Teijin Limited To Withdraw From U.S. Home Health Care Business To Complete Business Restructuring
Tokyo, Japan, April 28, 2017 --- Teijin Limited announced today that it would withdraw from the home health care market in the United States.
Teijin sells its entire holdings in wholly owned entities Braden Partners L.P. (California, U.S.; BP) and Associated Healthcare Systems, Inc. (New York, U.S.; AHS), both providers of home healthcare devices and services, to PPS HME LLC, an affiliate of an investment management firm Quadrant Management, Inc. Quadrant Management holds leading home healthcare providers in the U.S. and Teijin expects Quadrant Management to take over the highly-quality treatment services that BP and AHS have provided to their patients.
Extraordinary losses, mainly on sales of assets, will be recorded in fiscal 2016, which ended in March 2017. However, a decrease in tax expense due to the adoption of tax-effect accounting is expected to more than cover the extraordinary losses. As a result, net profit is expected to increase by approximately JPY 11 billion.
The Teijin Group has been operating a home health care business with its oxygen concentrators and continuous positive airway pressure units for sleep apnea syndrome. Activities are centered on Teijin Pharma Limited, the core company of the Teijin Group’s healthcare business. In 2008, The Teijin Group entered the North American market through acquisitions of companies such as BP and AHS. Thereafter, however, business conditions grew negative due to developments such as the U.S. healthcare reform, placing strong downward pressure on profits.
Teijin, since announcing its Revised Medium-term Management Plan in 2014, has been drastically reforming its home healthcare business in the U.S. Based on current conditions and the outlook going forward, Teijin ultimately decided to withdraw from the U.S. home healthcare market.
About the Teijin Group
Teijin (TSE: 3401) is a technology-driven global group offering advanced solutions in the areas of environmental value; safety, security and disaster mitigation; and demographic change and increased health consciousness. Its main fields of operation are high-performance fibers such as aramid, carbon fibers & composites, healthcare, films, resin & plastic processing, polyester fibers, products converting and IT. The group has some 150 companies and around 19,000 employees spread out over 20 countries worldwide. It posted consolidated sales of JPY790.7 billion (USD 7.4 billion) and total assets of JPY 823.4 billion (USD 7.7 billion) in the fiscal year ending March 31, 2016. Please visit www.teijin.com.
Press Contact
Corporate Communications
Teijin Limited
+81 3 3506 4055
pr@teijin.co.jp
Teijin sells its entire holdings in wholly owned entities Braden Partners L.P. (California, U.S.; BP) and Associated Healthcare Systems, Inc. (New York, U.S.; AHS), both providers of home healthcare devices and services, to PPS HME LLC, an affiliate of an investment management firm Quadrant Management, Inc. Quadrant Management holds leading home healthcare providers in the U.S. and Teijin expects Quadrant Management to take over the highly-quality treatment services that BP and AHS have provided to their patients.
Extraordinary losses, mainly on sales of assets, will be recorded in fiscal 2016, which ended in March 2017. However, a decrease in tax expense due to the adoption of tax-effect accounting is expected to more than cover the extraordinary losses. As a result, net profit is expected to increase by approximately JPY 11 billion.
The Teijin Group has been operating a home health care business with its oxygen concentrators and continuous positive airway pressure units for sleep apnea syndrome. Activities are centered on Teijin Pharma Limited, the core company of the Teijin Group’s healthcare business. In 2008, The Teijin Group entered the North American market through acquisitions of companies such as BP and AHS. Thereafter, however, business conditions grew negative due to developments such as the U.S. healthcare reform, placing strong downward pressure on profits.
Teijin, since announcing its Revised Medium-term Management Plan in 2014, has been drastically reforming its home healthcare business in the U.S. Based on current conditions and the outlook going forward, Teijin ultimately decided to withdraw from the U.S. home healthcare market.
About the Teijin Group
Teijin (TSE: 3401) is a technology-driven global group offering advanced solutions in the areas of environmental value; safety, security and disaster mitigation; and demographic change and increased health consciousness. Its main fields of operation are high-performance fibers such as aramid, carbon fibers & composites, healthcare, films, resin & plastic processing, polyester fibers, products converting and IT. The group has some 150 companies and around 19,000 employees spread out over 20 countries worldwide. It posted consolidated sales of JPY790.7 billion (USD 7.4 billion) and total assets of JPY 823.4 billion (USD 7.7 billion) in the fiscal year ending March 31, 2016. Please visit www.teijin.com.
Press Contact
Corporate Communications
Teijin Limited
+81 3 3506 4055
pr@teijin.co.jp