Henkel Chief Claims It Has Near $7bn War Chest For Further Acquisitions

Henkel chief executive Kasper Rorsted has said that the maker of household goods and industrial glues can spend up to $7bn (£4.1bn) on further acquisitions without putting its credit rating at risk.

Ratings agencies Standard & Poor's and Fitch have long-term issuer ratings of "A" on Henkel.

"We can spend between €4bn and €5bn ($6.8bn, £4bn) without endangering our good grades with credit rating agencies. That allows us to carry out larger acquisitions," Rorsted told German daily Sueddeutsche Zeitung.

The German firm's stock was trading 0.15% higher to €85.46 (£68) at 10:33 CEST in Frankfurt. The stock has gained 1.39% so far this year.

Henkel, which struck deals in France and the US in June 2014, has been busy buying up companies for well over a year in a bid to remain competitive in a consolidating consumer goods market.

In June, Henkel agreed to buy French household cleaner maker the Spotless Group for €940m (£748), alongside three American haircare brands for $368m (€270m, £214.8m).

Dusseldorf-based Henkel aims to boost revenue to €20bn (£15.9bn) in 2016, from €16.5bn (£13.1bn) in 2013, with half of all sales coming from Latin America or the Asia-Pacific region.

Rorsted is halfway through a plan, made public in 2012, to offload non-stratefic business units that bring in about €500m (£397.8m) in revenue.