Air Products Looks to Sell U.S. Healthcare

LEHIGH VALLEY, Pa.–Air Products has announced plans to sell its
U.S. Healthcare business, which operates in over 80 locations, has
approximately 1,700 employees and serves 120,000 patients mainly
throughout the eastern half of the country.

The company will report the business as a discontinued operation
beginning in the fiscal fourth quarter but will continue to operate
and serve patients until it is transitioned to a new owner,
according to a statement issued Tuesday.

Although a number of actions were implemented in 2007 to improve
U.S. Healthcare’s performance–including changes in
management, a product and service offering simplification program
and other measures to drive earnings growth and improve
profitability–the business continued to underperform, Air Products
said. As a result, in April, the company disclosed that it was
evaluating options for the business.

Based on a review of the market and competitive conditions, the
company said it had determined U.S. Healthcare no longer fits its
business portfolio. At its July meeting, the company’s board
of directors authorized management to pursue the sale of the
business, and the company is in discussions with potential
buyers.

“Unfortunately, despite progress in a number of areas, the
U.S. business is still not meeting expectations. At this time, we
believe the decision to sell this business is in the best interest
of our shareholders. This in no way affects our health care
operations outside of the U.S, which continue to perform well and
remain a core component of our strategy moving forward,” said
Chairman, President and CEO John E. McGlade.

Air Products said it has reached a preliminary agreement to sell
its U.S. Healthcare businesses in the metropolitan New York area
and in New Jersey, including its A&J Care locations in Glendale
and Peekskill, N.Y., and its COPD Services locations in Runnemede,
Cape May Courthouse and Cedar Grove, N.J. This sale is expected to
be completed by the end of the fiscal year.

Air Products has been in the U.S. health care market since October
2002 when it acquired American Homecare Supply. The company
subsequently made additional acquisitions–including its 2004
purchase of Chicago area independent Ultra Care, then one of the
largest privately held home respiratory and infusion companies in
the country with more than $30 million in sales–growing its U.S.
sales to $271 million in fiscal 2007.

Worldwide,
Air Products operates in industrial, energy, technology and health
care markets in mroe than 40 countries and has annual revenues of
$10 billion.