Siemens's Acquisition of Expro's Connectors and Measurement Unit Is Credit Positive - Moody's Global Credit Research

Siemens's Acquisition of Expro's Connectors and Measurement Unit Is Credit Positive

Siemens's Acquisition of Expro's Connectors and Measurement Unit Is Credit Positive - Moody's Global Credit Research
Siemens's Acquisition of Expro's Connectors and Measurement Unit Is Credit Positive
Published Mar 25, 2012
2 pages (1522 words) — Published Mar 25, 2012
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...Last Tuesday, Siemens AG (A1 positive) said it would buy a connectors and measurements unit of Britain's Expro Holdings UK 3 Limited (Caa1 negative) that specialises in underwater power cables for the oil and gas industry for an enterprise value of approximately 470 million ($630 million). The acquisition, whose price tag implies a revenue multiple of around 5x, is credit positive for Siemens as it adds missing key elements to its portfolio, enabling it to offer integrated and complete subsea power grid solutions. Although Siemens has not disclosed financial details of the transaction, which is subject to regulatory approval, we expect the impact of the acquisition on the company's credit metrics will be marginal and that it will not affect Siemens's rating and outlook. Our estimated pro forma ratio of retained cash flow to net debt is in the 90s-percent range, versus 101% for the 12-month period ended in December 2011. The acquisition offers a wide range of synergies for Siemens. The connectors...

  
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Issuer Comment

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Siemens Aktiengesellschaft
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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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MLA:
Moody's Global Credit Research. "Siemens's Acquisition of Expro's Connectors and Measurement Unit Is Credit Positive" Mar 25, 2012. Alacra Store. Sep 22, 2020. <http://www.alacrastore.com/moodys-credit-research/Siemens-s-Acquisition-of-Expro-s-Connectors-and-Measurement-Unit-Is-Credit-Positive-PBC_140883>
  
APA:
Moody's Global Credit Research. (). Siemens's Acquisition of Expro's Connectors and Measurement Unit Is Credit Positive Mar 25, 2012. New York, NY: Alacra Store. Retrieved Sep 22, 2020 from <http://www.alacrastore.com/moodys-credit-research/Siemens-s-Acquisition-of-Expro-s-Connectors-and-Measurement-Unit-Is-Credit-Positive-PBC_140883>
  
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