Danaher's (DHR) Acquisition of Cepheid is Credit-Negative Development - Moody's

Moody's Investors Service said that the planned $4 billion, debt-funded acquisition of Cepheid (NASDAQ: CPHD)(unrated) by Danaher Corporation (NYSE: DHR) is credit negative but its A2 rating is unaffected. For further information, please see www.moodys.com.

Moody's considers this acquisition a credit negative investment because of a very high purchase multiple funded entirely with debt. Its ratings and stable outlook of Danaher are unaffected because of Danaher's credit metrics and expected annual free cash flow of about $2.3 billion provide the ability to make large investments like this one that enhance its business profile. The company's strong track record of successfully integrating acquisitions is also supportive.

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