Chemicals and food ingredient distributor Azelis is planning to fund about €110 million worth of bolt-on acquisitions via a €100 million add-on to its first-lien term loans. Modest organic growth and contributions from acquired businesses should limit any leverage impact this year, and we continue to forecast adjusted debt to EBITDA at about 7.0x, with some improvement thereafter. We are affirming our 'B' ratings on Azelis' parent, Akita MidCo Sarl and the first-lien debt. The stable outlook reflects our expectation that the group will generate positive free cash flows in the coming years, and favorable interest coverage ratios higher than 2.0x. We affirmed the ratings due to the relatively favorable multiples at which Azelis is acquiring complementary businesses. The €100
