1 October 2002
Air Products buys into U.S. home medical market
Lehigh Valley, Pa. – Gases and chemicals supplier Air Products said Tuesday it has acquired privately owned American Homecare Supply (AHS), a homecare provider with northeastern U.S. operations, for approximately $165 million.
Conshohocken, Pa.-based AHS has approximately 800 employees and ranked among the 10 largest U.S. homecare providers of respiratory therapy and home medical equipment. AHS claims annual revenues of more than $110 million and about 95,000 patients as clients.
Air Products said it currently serves 180,000 patients and has been providing products and services to the medical industry for over 50 years. With the AHS acquisition, the company and its affiliates will now provide home medical services to more than 275,000 patients in 14 countries from more than 200 locations.
"American Homecare Supply has succeeded in building a dynamic, respected business," said John P. Jones, Air Products CEO. "Air Products is well positioned to become an industry leader in the U.S. by 2005. We are excited about the opportunity to significantly expand our global healthcare platform by entering the large and growing respiratory therapy and home medical equipment market in the U.S," he said.
Jones said that U.S. homecare segment market is estimated to grow in the range of 7%-10% annually.
Air Products said it intends to offer globally a suite of products and services including medical gases, such as oxygen and nitrogen; helium used in magnetic resonance imaging; homecare respiratory therapy and home medical equipment; and products like its OxyWalkAir portable, ambulatory breathing system used by thousands of patients in Europe seeking increased independence.
Robert Cucuel, American Homecare CEO, said he will continue as CEO and the business will remain headquartered in Conshohocken. It will operate as a separate, wholly owned subsidiary of Air Products.
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