Apria Acquires Air Liquide’s U.S. Home Division

Lake Forest, Calif.

Apria Healthcare snatched up another competitor in July, closing a deal to acquire Paris-based Air Liquide’s $20 million U.S. home care business, VitalAire, which has 18 locations primarily in the northern half of Florida.

Last year, Air Liquide said it had plans to become more active in the U.S. market, acquiring businesses with problems resulting from decreased oxygen reimbursement. The company’s Air Liquide Sante subsidiary serves 300,000 patients and 5,000 hospitals worldwide with medical gases and respiratory equipment.

“Air Liquide Healthcare will continue to focus on the fast-growing markets where it has established solid positions,” Jean-Marc de Royere, Air Liquide’s senior vice president, health and specialty chemicals, said in a company statement. “We will pursue our development, particularly on the basis of our European activities, and will consider, in the large markets including the USA, any attractive opportunity which would allow us to achieve critical mass.”

For Apria, say observers, the acquisition is proof-positive that the giant provider’s own possible sale has not put a damper on its acquisition strategy. In June, the company confirmed it had brought on Morgan Stanley to consider potential offers. According to the New York Post, insiders have speculated those offers to be as high as $2.5 billion.

“Apria has continued [its acquisition strategy] at full-speed ahead, and that message seems to be resonating throughout the whole organization,” said The Braff Group’s Bob Leonard, who managed the recent transaction for Air Liquide. “What made sense before [exploring potential buyers] will continue to make sense now.”

Apria, which provides respiratory therapy, home IV and HME through 500 branches in 50 states, closed seven deals worth $28.1 million during the first quarter this year and seven deals worth $67.3 million in the second quarter.