Air Products yesterday announced that it has made further divestments in its healthcare portfolio, having sold three of its US healthcare businesses to Landauer-Metropolitan, Inc. (LMI).
As the largest provider of durable medical equipment, respiratory and infusion services in the northeast US, LMI’s purchase of three more units strengthens the company further and adds to the two businesses it acquired from Air Products last year.
September 2008 saw Air Products complete the sale of two other US healthcare businesses to LMI, including A&J Care in New York and COPD Services in New Jersey.
Terms of the newly announced deal were not disclosed, but its understood that the sale includes Air Products’ ownership interests in certain companies previously operated as part of the Air Products Healthcare LLC Group - namely Genox Homecare, Mid-Atlantic Healthcare, and Young’s Medical Equipment.
No longer a good fit
The latest announcement follows the news earlier this month that the company had agreed to sell all of its US home infusion therapy services businesses and some elements of its respiratory & home medical equipment business to OptionCare Enterprises, Inc., a subsidiary of Walgreen Co.
All in all, it had been decided last year that the US healthcare business no longer represented a good fit for Air Products’ business portfolio.
In July 2008, the company announced plans to sell its US Healthcare business and begin reporting the business as a discontinued operation, having felt that the perhaps underperforming business was no longer a good business fit.
Only a year before (2007), Air Products had implemented a number of significant actions to improve the performance of its US Healthcare business, however 2008 saw the business continued to under-perform.
Looking ahead after the latest divestment to LMI, Air Products declares that it expects to sell its remaining US healthcare businesses by the end of the company’s fiscal year in September.