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S&P: Interline Brands unaffected
Standard & Poor's said its ratings and outlook on Interline Brands Inc. (BB-/stable) remained unchanged following the company's announcement that it will acquire substantially all of the assets of unrated American Sanitary Inc. for $128 million and that Interline will refinance its existing indebtedness.
Although the addition of American Sanitary expands Interline's product line, the acquisition does not meaningfully improve Interline's business position, the agency said, adding that it expects that Interline will finance the acquisition in such a way that total leverage averages about 3.5 times over the intermediate term.
The agency said it is unlikely to raise the ratings over the near term, given Interline's relatively small size compared to some of its competitors and its growth strategy, which could include additional debt-financed acquisitions.
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