By Ulrike Dauer

FRANKFURT--Covestro AG (1COV.XE), the German specialty-plastics business that Bayer AG (BAYN.XE) floated last October, plans to invest part of the money raised in its 5 billion euro ($5.56 billion) debt-issuance program in acquisitions to boost its profitability, Chief Financial Officer Frank Lutz told German magazine Euro am Sonntag.

Covestro is looking to build up know-how or strengthen its coatings, adhesives and specialties business through an acquisition, Mr. Lutz told the magazine in an interview published Saturday. He didn't specify the size of any potential deals, but said the company's free cash flow should remain above the three-year average this year.

Covestro mainly produces polyurethanes and polycarbonates, which are used in the automobile, furniture and construction industries. Its products are also used in mattresses, car seats and soccer balls.

Bayer, which last week made a $62 billion offer to buy U.S. competitor Monsanto Co. (MON), still holds a stake of about 64% in the business. Covestro needs to pay off a EUR2.1 billion loan from Bayer this year. In March, Covestro placed EUR1.5 billion of the EUR5 billion with investors. The EUR5 billion debt issuance plan is a long-term plan.

Mr. Lutz also said the company was on track to meet its full-year targets.

Write to Ulrike Dauer at ulrike.dauer@dowjones.com

(END) Dow Jones Newswires

May 28, 2016 08:35 ET (12:35 GMT)