DANBURY, Conn. — In a Dec. 15 press release, Praxair said it intends to sell the U.S. home care portion of its North American health care business.
The company doubled the size of that business in 2004 with the $245 million purchase of Beaumont, Texas-based Home Care Supply, a 60-branch HME with 1,200 employees. The acquisition gave Praxair operations in 27 states. But according to an analyst with Argus Research Corp., the market isn't growing as fast as the company thought. "It's not as profitable as they thought," William Selesky told the Stamford Advocate.
A spokesman for Praxair told the newspaper that the home care unit is under pressure because of declining reimbursements, but he also said "there are a number of prospective buyers."
Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2009 sales of $9 billion and operations in 30 countries. Praxair Healthcare Services provides home oxygen, sleep therapy, enteral services and HME through 85 U.S. locations, with annual sales of approximately $150 million.
Read the Advocate story at www.stamfordadvocate.com/default/article/Praxair-affirms-forecast-despite-taking-290M-902438.php.