Bulletin: Fresenius SE&Co. KGaA Ratings Unaffected By Announced Acquisitions Of Akorn, Inc. And Merck's Biosimilar Business

PARIS (S&P Global Ratings) April 25, 2017--S&P Global Ratings said today that its ratings and outlook on Fresenius SE&Co. KGaA (BBB-/Stable/A-3) are not affected by the group's announced acquisitions of U.S.-based pharmaceutical group Akorn, Inc. (B+/Watch Pos/--) and the biosimilar business of Germany-based Merck KGaA (A/Stable/A-1). Fresenius will invest a total of about $5.5 billion for both acquisitions: $4.3 billion for Akorn, plus approximately $450 million of net debt, and for Merck KGaA's biosimilar business, up to €670 million, of which €170 million will be paid upfront and approximately €500 million in future milestone payments. The two acquisitions will strengthen the competitive position of Fresenius Kabi, the group's infusion therapy and clinical nutrition arm. These transactions come shortly

...PARIS (S&P Global Ratings) April 25, 2017--S&P Global Ratings said today that its ratings and outlook on Fresenius SE & Co. KGaA (###-/Stable/A-3) are not affected by the group's announced acquisitions of U.S.-based pharmaceutical group Akorn, Inc. (B+/Watch Pos/--) and the biosimilar business of Germany-based Merck KGaA (A/Stable/A-1). Fresenius will invest a total of about $5.5 billion for both acquisitions: $4.3 billion for Akorn, plus approximately $450 million of net debt, and for Merck KGaA's biosimilar business, up to 670 million, of which 170 million will be paid upfront and approximately 500 million in future milestone payments. The two acquisitions will strengthen the competitive position of Fresenius Kabi, the group's infusion therapy and clinical nutrition arm. These transactions come shortly after Fresenius acquired Spanish private hospital operator IDCSalud Holding S.L.U. for about 5.76 billion. Although the group's leverage will increase as a result of these deals, our forecasts...

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