S & P affirms PerkinElmer, removes from credit watch
Standard and Poor's Ratings Service affirmed its "BBB" corporate credit rating of life sciences company PerkinElmer Inc. and removed it from credit watch Monday after reviewing its plans to acquire Caliper Life Sciences Inc.
S&P placed Waltham, Mass.-based PerkinElmer on credit watch Sept. 8 after it announced its plan to buy Caliper for $641 million. Hopkinton, Mass.-based Caliper makes technologies used for drug development.
S&P said it met with PerkinElmer management and now expects that the company will use its healthy cash flow to pay down its debt. About $400 million of the Caliper purchase will be funded with additional debt.
"The investment-grade rating on PerkinElmer reflects the company's satisfactory business risk profile, highlighted by its strong positions in diverse and attractive business segments," S&P credit analyst Rivka Gertzulin said in a statement. "In addition, the company has a track record of sustained profitability and prudent debt financing."
S&P assigned a stable outlook to PerkinElmer.
PerkinElmer shares fell 3 percent, or 60 cents, to close at $18.61. S&P's announcement came after the stock market closed. The shares were unchanged in after-market dealings.