One of the largest European clinical laboratory operators. High margins relative to peers. Highly leveraged financial risk profile. Very acquisitive business model. Only moderate commitment to the company's financial policy. Southern European austerity measures that limit business. The ratings on France-based clinical laboratory operator Groupe Labco S.A. (Labco) reflect Standard & Poor's Ratings Services' assessment of the company's highly leveraged financial risk profile, predominantly small acquisitions since the company's inception in 2003, as well as our view of Labco's "fair" business risk profile. We view Labco's overall acquisitive business model as a key business risk profile weakness, although we appreciate that Labco's multitude of small transactions poses less integration risk compared with a single large transaction. In addition, Labco's growth...
Companies mentioned in this report are:
- Labco S.A.
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Research Type: Full Analysis