Bulletin: Thermo Fisher Scientific Inc. Ratings Unaffected By Plan To Acquire Phadia May 11
- ID: 1793750
- May 2011
- Standard & Poors
TORONTO (Standard & Poor's) May 19, 2011--Standard & Poor's Ratings Services said today that its ratings on Waltham, Mass.-based life science company Thermo Fisher Scientific Inc. (A/Stable/-) are unaffected by the company's plan to acquire Swedish specialty diagnostics company Phadia for roughly $3.5 billion in cash. Phadia develops and manufactures blood-based diagnostics systems for diagnosing and monitoring allergy and autoimmune diseases, a relatively high-margin, fast growing business. The acquisition will likely drive Thermo Fisher's leverage to over 3x and reduce funds from operations to debt to a level inconsistent with its modest financial risk profile. However, we believe that, given Thermo Fisher's long-standing commitment to a conservative financial risk profile and its stable, highly visible annual free cash flow generation...
Companies mentioned in this report are:
- Thermo Fisher Scientific Inc.
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