Allied Healthcare International Inc. (AHCI:NSQ), the US-quoted provider of temporary staffing services to the health care and social care industries in the UK and Ireland, has announced that its UK subsidiary, Allied Healthcare Group Limited, has reached an agreement to assume responsibility for the homecare business of Sue Ryder.

Sue Ryder is a national charity organisation, which has been providing health and social care services in local communities since the early 1990's. Its homecare business consists of eight branches in England with sites in Doncaster, Bournemouth, Wolverhampton, Wigan, Trafford, Lincoln, Macclesfield and Newark, providing 8,000 hours of care each week. Last year Sue Ryder revenues from homecare activities were in excess of 5 million Pounds ($8 million).

In connection with the transaction, Allied has agreed to pay a deferred consideration of up to a maximum of 130,000 Pounds linked to the hours transferred after a three-month period.

Sandy Young, Chief Executive Officer of Allied, commented "we are excited about the transfer of Sue Ryder's charity homecare services to Allied, which is in line with our growth strategy and commitment to providing high quality services. Both Sue Ryder and Allied Healthcare Group have established very strong industry reputations, and our businesses are a good fit. We look forward to welcoming Sue Ryder employees to our group."

Paul Woodward, Chief Executive Officer of Sue Ryder, said "after careful consideration the charity is proposing to transfer all its English homecare business to Allied. Allied is one of the U.K.'s leading homecare providers, whose quality credentials and experience in the homecare sector mean that they are well placed to handle the seamless transition of care services on this scale. It is anticipated by Allied that there will be no care worker redundancies as a result of this transfer. We have had support from homecare Local Authority Commissioners, which encourages us to believe we are doing the right thing."

At the end of play in New York last night, Allied Healthcare's shares were down by -1.63% to US$2.45