Bulletin: Thermo Fisher Scientific Inc.'s Planned Acquisition Of FEI Co. Does Not Affect Ratings

NEW YORK (S&P Global Ratings) May 27, 2016--S&P Global Ratings said today that its ratings and outlook on Thermo Fisher Scientific Inc. (BBB/Stable/A-2) are unaffected by the company's proposed acquisition of FEI Co. for approximately $4.2 billion. We expect Thermo Fisher to complete the acquisition by early 2017 and fund the transaction with a combination of debt and cash. While we expect Thermo Fisher to incur additional debt as a result of the acquisition, we don't anticipate any changes to our assessment of the company's financial risk profile, given the expectation that Thermo Fisher will generate over $2.5 billion in discretionary cash flow in 2016 and around $3 billion in 2017. Pro forma for the FEI transaction and assuming Thermo

...NEW YORK (S&P Global Ratings) May 27, 2016--S&P Global Ratings said today that its ratings and outlook on Thermo Fisher Scientific Inc. (###/Stable/A-2) are unaffected by the company's proposed acquisition of FEI Co. for approximately $4.2 billion. We expect Thermo Fisher to complete the acquisition by early 2017 and fund the transaction with a combination of debt and cash. While we expect Thermo Fisher to incur additional debt as a result of the acquisition, we don't anticipate any changes to our assessment of the company's financial risk profile, given the expectation that Thermo Fisher will generate over $2.5 billion in discretionary cash flow in 2016 and around $3 billion in 2017. Pro forma for the FEI transaction and assuming Thermo Fisher will remain moderately acquisitive going forward, we still expect leverage to remain within the 3.0x-4.0x range over the next few years, a level commensurate with our current assessment of a significant financial risk profile. FEI designs, manufactures,...

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