BOC to sell off US gas business.

Industrial gases group BOC boosted its balance sheet yesterday with a deal to sell its US packaged gas business for up to pounds 110.9m.

The Surrey-based company has signed a letter of intent that will see it to offload the business to US-based Airgas.

BOC said the disposal represented the "best long-term outcome" after efforts to lever the loss-making packaged gas business into the black failed. The deal involves its US plants where gases are compressed into cylinders before being distributed for sale. It also includes BOC's distribution business for packaged gases and welding equipment to stores and warehouse facilities.

The packaged gas business generated pounds 133.1m in revenues last year, representing more than half the turnover of BOC's industrial and special gases division in the Americas.BOC will retain its Canadian packaged gas business and special products such as bulk medical gases.

Chief executive Tony Isaac said: "We have worked hard to improve the performance of our packaged gases business in the United States, and we believe the proposed sale represents the best long-term outcome."

BOC, which employs 44,500 people, signalled "favourable trends" across most of its divisions with signs that demand in the semiconductor market was improving.