Moody's Adecco ratings unaffected

Moody's Investors Service said its ratings on Adecco SA are not immediately affected by the company's announcement that it has entered into an agreement with the Paulmann family to acquire all of their shares (roughly 29%) in DIS AG. Adecco also said it will launch a voluntary public tender offer for the remaining shares of the company and will make a number of senior management changes in connection with the transaction.

The acquisition will be wholly debt-financed, the agency said. If 100% of the company's shares are tendered, Adecco's total purchase price will amount to €636 million, net of cash acquired.

Moody's said it recognizes the strategic rationale behind this acquisition, which will provide Adecco with a high-margin business and a number two market position in Germany, which offers significant growth opportunities as one of the lowest-penetrated markets in Europe in terms of staffing.

The current rating positioning was factoring some moderate bolt-on acquisition activity, the agency said. Therefore, given the relative large size of this acquisition, Moody's predicted it will significantly reduce the group's financial flexibility.

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