S&P: Quanex unaffected

Standard & Poor's said Monday its credit ratings and outlook on Quanex Corp. (BBB-/stable/--) are unaffected by the company's announcement of the acquisition of Mikron Industries Inc. for $205 million in cash.

While the transaction has increased Quanex's total debt to capital to 41%, above S&P's expectation of 35%, S&P said it expects that the company, through retained earnings and excess cash flows applied to debt reduction, will achieve a total debt to total capital ratio below 35% within the next year.

Mikron, a manufacturer of engineered vinyl and thermoplastic alloy composite window components, window coverings, and door components, expands Quanex's engineered products business and should provide cross-selling opportunities to its other vinyl and wood component businesses.

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