Air Products & Chemicals Inc. (APD) agreed to sell its
homecare business in Belgium, Germany, France, Portugal and Spain
to Linde AG (LNEGY, LIN.XE) for EUR590 million as it focuses on its
core gases business.
The industrial-gas maker is also evaluating options for its
remaining homecare interests in the U.K., Ireland, Argentina and
Brazil.
The business has 850 employees and generated about EUR210
million in revenue from 260,000 patients last year.
"With the more recent trends towards concentrators and
non-oxygen therapies, we feel it is no longer a natural fit with
our core gases business," said Air Products Chairman and Chief
Executive John McGlade.
Linde said it had 2010 homecare sales of about EUR280 million
and it expects the acquisition to improve its position in the
European respiratory homecare business. The company, which said it
is the second largest supplier of medical gases and related
services, had total 2010 sales of EUR12.87 billion.
Air Products reported in October its fiscal fourth-quarter
earnings rose 19% as higher volume growth in Asia and double-digit
gains in three out of four segments helped boost revenue 11%. But
the company gave a downbeat fiscal first-quarter earnings forecast
citing global economic and policy uncertainties.
Shares of Air Products and Linde closed Friday at $86.32 and
$14.95, respectively. Both stocks were inactive premarket.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@dowjones.com