S&P: Lab Corp. unaffected

Standard & Poor's said there would be no affect on the ratings and outlook on Laboratory Corp. of America Holdings (BBB/stable/--) after the company agreed to acquire Esoterix Inc. for $150 million in cash.

LabCorp. will fund the purchase with cash on hand and proceeds from its revolving credit facility.

While the purchase reduces liquidity somewhat, S&P said LabCorp does not have any significant near-term maturities and it consistently generates more than $100 million of free cash flow per quarter.

The acquisition highlights LabCorp's increasing focus on areas of esoteric testing, according to S&P.

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