Azelis Holding S.a.r.l. plans to acquire U.S.-based Vigon International using a €330 million add-on to its first-lien term loan, together with €50 million equity from private equity owner EQT. Although we see the acquisition as re-leveraging, Azelis' strong business resilience in 2020 amid stable volumes, good cost management, and efficient integration of acquired businesses provide rating leeway. We expect adjusted debt to EBITDA of about 7.0x in 2021 pro forma the acquisition, after 6.9x in 2020. We have therefore affirmed our 'B' ratings on Azelis and its first-lien debt. The stable outlook reflects our view that Azelis will maintain solid free cash flow generation and a deleveraging trend in the coming years, supported by growth in specialty chemical distribution and
