Las Vegas ambulance company to be sold

AMR SALE

American Medical Response, a health-care operation Laidlaw Inc. plans to sell, has nonexclusive franchise agreements with Clark County, the city of Las Vegas and the city of North Las Vegas for ambulance service. The company has an assist-as-needed agreement with the city of Henderson.

Nicole Casey, a spokeswoman for AMR in Las Vegas, said the company operates 90 ambulances and has 450 employees locally.

Casey said the nonexclusive agreement allows other companies to apply to serve the respective cities and the city of Las Vegas' fire department also transports patients.

Casey said no changes are planned at AMR while Laidlaw seeks a buyer for the company.

BURLINGTON, Ontario -- Laidlaw Inc., which bought Greyhound Lines Inc. in March, said it expects to sell its U.S. health-care operations and a 44 percent stake in Safety-Kleen Corp. for $2 billion to focus on expanding its bus business.

Laidlaw, North America's largest bus company and biggest provider of ambulance services, said it expects to sell American Medical Response, EmCare and its stake in No. 3 U.S. waste-disposal company Safety-Kleen, Columbia, S.C., within the next year. The Burlington, Ontario-based company said it expects a loss of $1 billion, or $3.03 per share, on the sale of its health-care businesses.

The sale will give Laidlaw the money it needs to buy more bus companies as the industry consolidates, James Bullock, president and chief executive, said in a statement. Bullock said the company's stock price, which has fallen 29 percent in the past year, doesn't reflect the value of its health-care businesses.

"Obviously, the past year in the U.S. health-care industry has been extremely difficult for all participants, including Laidlaw," Bullock said in a statement. "Although the restructuring of American Medical Response, which began in early spring, is taking hold and will deliver improving results, we do not believe AMR and EmCare have been or will be attributed appropriate value as part of Laidlaw's business portfolio."

Laidlaw, which paid $650 million for Greyhound to become the nation's top intercity bus operator, isn't the only company making acquisitions in the industry. U.K. rival Firstgroup Plc said in July that it would pay $940 million in cash to buy Ryder System Inc.'s school bus business, the second-largest operator.

American Medical Response, based in Aurora, Colo., had revenue of $1 billion in the year ended Aug. 31. It is the largest provider of emergency and nonemergency ambulance service in the United States.

EmCare, which manages hospitals' emergency room billing and other administrative functions, had 1999 sales of $475 million.

Laidlaw's shares rose 44 cents to $7 in early Instinet trading. Safety-Kleen was unchanged at $12.44

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