Word of a $74.7 million sale sent shares of Allied Healthcare International Inc. (Nasdaq: AHCI) (AIM: AHI) up 31 percent in Monday afternoon trading. Today the healthcare staffing provider announced the sale of its subsidiaries, Allied Respiratory Ltd. and Medigas Ltd., to Air Liquide Group, a provider of industrial and medical gases.
According to the press release, Allied maintains a concentration on the expansion of its UK branch network, which provides both homecare services and staffing to local governments and other institutions. The sale of its subsidiaries will allow the company to continue its efforts in the healthcare industry.
“Allied is committed to providing a full spectrum of disease state management programs to sustain patient independence and mobility in the home,” Sara L. Eames, interim CEO and deputy chairman stated. “The company has vetted and trained careers, nurses, and case managers, and develops individual care plans to meet the ever-changing patient requirements outside of the hospital setting. We are fully prepared to move forward with our mission to increase Allied’s market share in the growing UK homecare services market.”
Part of the company’s mission includes the reduction of debts and investments that will further the company’s penetration in patient care management and the healthcare industry.
“Allied will utilize the proceeds from the transaction to pay down debt and invest in information technology that will enable the company to more efficiently partner with local governments in patient care management. We are optimistic about the growing market potential that exists in the UK, and look forward to moving ahead with a significantly strengthened balance sheet,” stated David Moffatt, Allied CEO.
Those strengths were outlined in the company’s third-quarter results released in August. Allied posted $77.6 million for the period ended June 30, a $4.4 million increase over last year’s $73.2 million. Operating income was reported at $3.3 million as compared to $2.9 million the same period last year.
Shares of Allied are up nearly 34 percent to $3.19 this afternoon, moving on volume of 370,921.