Henkel Has Near $7bn War Chest for Further Deals: CEO
Henkel's chief executive Kasper Rorsted is in an acquisitive moodReuters

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.