Quipt Home Medical Completes Strategic Acquisition of Hart Medical Adding $60 Million in Revenue

Rhea-AI Summary

Quipt Home Medical (NASDAQ: QIPT) has completed the acquisition of a 60% ownership stake in Hart Medical Equipment for $17.4 million, funded through senior credit facilities. The remaining 40% is held by multiple health systems and hospitals.

Hart generates $60 million in annual revenue and $7 million in Adjusted EBITDA, with expectations to reach $10+ million in annual Adjusted EBITDA within 6-9 months. The acquisition pushes Quipt's annualized run-rate revenue above $300 million, with anticipated Adjusted EBITDA exceeding $65 million post-integration.

Hart serves over 67,000 patients monthly and maintains strategic relationships with major health systems, being integrated into the discharge processes of more than 19 hospitals and affiliated care facilities across its network.

Positive

• Significant revenue addition of $60 million annually from Hart acquisition
• Expected increase in Hart's Adjusted EBITDA from $7M to $10M+ within 6-9 months
• Strategic expansion into Michigan market and broader Midwest presence
• Integration with 19+ hospitals' discharge processes through health system partnerships
• Large patient base of 67,000+ monthly, providing recurring revenue
• Conservative leverage maintained despite acquisition size

Negative

• Integration period of 6-9 months required before achieving targeted EBITDA margins
• 40% ownership remains with other entities, limiting full control
• Additional credit facility expansion needed for future acquisitions

Insights

Financial Analyst

Quipt's strategic acquisition of Hart Medical strengthens its position in respiratory care with significant financial and operational benefits.

Quipt Home Medical's $17.4 million acquisition of a 60% stake in Hart Medical Equipment represents a strategic expansion that materially impacts the company's financial profile. The transaction immediately boosts Quipt's annualized revenue run-rate to over $300 million, with Hart contributing approximately $60 million in annual revenue. More importantly, Hart's $7 million in current Adjusted EBITDA is expected to grow to $10+ million within 6-9 months, ultimately helping push Quipt's total Adjusted EBITDA to exceed $65 million.

The deal structure is particularly compelling. By acquiring 60% ownership while allowing health system partners to retain 40%, Quipt maintains operational control while preserving valuable healthcare system relationships. These partnerships with Henry Ford Health, McLaren Health Care, Blanchard Valley Health System and others embed Quipt directly into the discharge processes of 19+ hospitals, creating a sustainable patient referral pipeline.

From a financial perspective, Quipt funded this acquisition through existing senior credit facilities while maintaining a conservative leverage ratio. Management's plans to increase credit facilities indicate confidence in their acquisition pipeline without overleveraging the balance sheet. The 67,000 monthly patients served by Hart provide a stable, recurring revenue stream that should translate to predictable cash flows.

This transaction represents a disciplined approach to consolidation in the home medical equipment space, particularly in respiratory care. By significantly expanding its Midwest footprint and healthcare system integration, Quipt is strengthening its competitive position in a fragmented industry while maintaining healthy margins.

Transaction Strengthens Health System Partnerships, Expands Midwest Footprint, and Reinforces Long-Term Growth Strategy

CINCINNATI, Sept. 03, 2025 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (“Quipt” or the “Company”) (NASDAQ: QIPT; TSX: QIPT), a U.S. based home medical equipment provider, focused on end-to-end respiratory care, today announced the closing of its previously announced joint venture transaction with three major health systems and two hospitals to acquire Hart Medical Equipment (“Hart”). Quipt has acquired a 60% ownership interest in Hart, with the remaining 40% interest collectively held by Henry Ford Health, McLaren Health Care, Blanchard Valley Health System, Wood County Hospital, and The Bellevue Hospital.

Transaction Highlights:

• Quipt has acquired a 60% ownership interest in Hart for total consideration of $17.4 million which was funded by senior credit facilities.
  
  
• Hart generated approximately $60 million in annual revenue and $7 million in Adjusted EBITDA for the twelve months ended June 2025 and expects to generate $10+ million in annual Adjusted EBITDA over the next 6-9 months.
  
  
• Management anticipates Hart’s Adjusted EBITDA margins will align with Quipt’s historical corporate averages over the next 6-9 months.
  
  
• For reporting purposes, Quipt expects to consolidate the financial results of Hart. Accordingly, Quipt’s expected annualized run-rate revenue is now in excess of $300 million. Upon successful integration of Hart over the next 6-9 months, Quipt’s Adjusted EBITDA is anticipated to be in excess of $65 million. As the primary beneficiary of the joint venture it is expected that the 40% non-controlling equity interest will be reported as a separate component on the Company’s Consolidated Statements of Financial Position.
  
  
• Hart maintains longstanding strategic relationships with leading integrated health systems, including Henry Ford Health, McLaren Health Care and Blanchard Valley Health, as well as freestanding community-based hospitals, embedding the business into the hospital discharge processes of more than 19 hospitals and affiliated care facilities across its network.
  
  
• Hart serves more than 67,000 patients monthly, providing a stable and recurring revenue stream.
  

Management Commentary:

“We are excited to officially close this milestone transaction with three major health systems and welcome Hart to the Quipt family,” said Greg Crawford, CEO and Chairman of Quipt. “Hart’s strong health system relationships and regional market leadership represent a powerful strategic fit. This acquisition demonstrates the scalability of our acquisition platform, while providing us with a major entry into Michigan and expanded reach across the Midwest. Looking ahead, we see a deep pipeline of additional opportunities that can be integrated onto our platform to further accelerate growth. With a stabilized revenue base, consistent Adjusted EBITDA performance, and building momentum within the business, we are confident in our ability to close the calendar year on a high note and carry strong momentum into 2026.”

“The successful closing of Hart underscores our disciplined approach to acquisitions and highlights the strength of our healthcare system-focused growth strategy,” said Hardik Mehta, CFO of Quipt. “We funded this transaction with our existing credit facility, while maintaining a conservative leverage ratio. Importantly, we will look to increase the size of our senior credit facilities, which would provide us with additional flexibility to execute on our robust pipeline, while maintaining a modest long-term leverage profile consistent with our historical financial discipline. We are excited about the opportunities ahead and are well-positioned to generate consistent organic growth, while continuing to strengthen our platform through disciplined execution.”

Hart Medical current executive, Allen Hunt, stated, “As a DME provider deeply embedded in the needs of health systems, we continue to see extraordinary, untapped potential in our space. The recent wave of consolidation across key markets has made one thing clear: to remain relevant and accelerate growth in today’s dynamic healthcare environment, additional scale is no longer optional, even for organizations like ours generating over $60 million annually. Recognizing this, we embarked on a rigorous search for a partner who could not only deliver the operational and technological scale we needed, but also share our commitment to serving the specialized needs of health system partners. In Quipt, we found that partner. Quipt brings more than just scale. Their patient-centered leadership, innovative mindset, and cultural alignment with our own make them an ideal match. Together, we are now positioned to seize the significant growth opportunities emerging throughout our service area.”

The Braff Group served as exclusive financial advisor for Hart.

ABOUT QUIPT HOME MEDICAL

The Company provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continue to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company’s organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient’s services, and making life easier for the patient.

Reader Advisories

Readers are cautioned that the financial information regarding the Hart disclosed herein is unaudited and derived as a result of the Company’s due diligence, including a review of Hart’s bank statements and tax returns.

Unless otherwise specified, all dollar amounts in this press release are expressed in U.S. ‎dollars.‎

Forward-Looking Statements

Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or “forward-looking information” as such term is ‎‎‎‎‎‎defined in applicable Canadian securities legislation (collectively, “forward-looking statements”). The words “may”, “would”, “could”, “should”, "potential”, ‎‎‎‎‎‎‎"will”, "seek”, "intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “outlook”, or the negatives thereof or variations of such words, and similar expressions ‎‎‎‎‎as ‎they relate to the Company are intended to ‎identify forward-looking statements, including: post integration financial results (revenue and Adjusted EBITDA) of Hart; management’s expectations for Quipt’s post-closing annualized run rate; management’s expectations for post-closing Adjusted EBITDA for the joint venture and the timing of such results; the Company anticipating strong margin performance throughout the year and into 2026; the Company’s expectations and timing of growth; the Company’s expectations regarding the impact of the acquisition of the joint venture; opportunities to increase long-term shareholder value. All statements ‎other ‎than ‎statements of ‎‎historical fact, including those that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-‎looking statements and may involve estimates, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Such statements reflect the ‎Company's ‎current ‎views and ‎‎intentions with respect to future ‎events, and current information available to the ‎Company, and ‎are ‎subject to ‎‎certain risks, uncertainties and ‎assumptions, including, without limitation: the ‎Company successfully identifying, ‎‎‎negotiating and ‎completing additional acquisitions; operating and other financial metrics maintaining their ‎‎current trajectories, the Company not being impacted by any further external and unique events like the Medicare ‎‎75/25 rate cut and the Change Healthcare cybersecurity incident for the remainder of 2025; and the ‎Company not being subject to a material change to it cost structure. Many ‎factors could cause the actual ‎results, ‎‎performance or achievements that may be ‎expressed ‎or implied by such ‎forward-looking statements to ‎vary from ‎‎those described herein should one or more ‎of these ‎risks or ‎uncertainties materialize. Examples of such ‎risk ‎factors ‎include, without limitation: risks related ‎to credit, market ‎‎‎(including equity, commodity, foreign exchange ‎and interest ‎rate), ‎liquidity, operational ‎‎(including technology ‎and ‎infrastructure), reputational, insurance, ‎strategic, ‎regulatory, legal, ‎environmental, and ‎capital adequacy; the ‎‎general business and economic conditions in ‎the regions ‎in which the ‎Company operates; ‎the ability of the ‎‎Company to execute on key priorities, including the ‎successful ‎completion of ‎acquisitions, ‎business retention, and ‎‎strategic plans and to attract, develop and retain ‎key ‎executives; difficulty ‎integrating ‎newly acquired businesses; ‎‎the ability to implement business strategies and ‎‎pursue business opportunities; low ‎profit ‎market segments; ‎‎disruptions in or attacks (including cyber-attacks) on ‎‎the Company's information ‎technology, ‎internet, network ‎‎access or other voice or data communications systems or ‎‎services; the evolution of ‎various types ‎of fraud or other ‎‎criminal behavior to which the Company is exposed; the ‎‎failure of third parties to ‎comply with ‎their obligations to ‎‎the Company or its affiliates; the impact of new and ‎‎changes to, or application of, ‎current ‎laws and regulations; ‎‎decline of reimbursement rates; dependence on few ‎‎payors; possible new drug ‎discoveries; a ‎novel business ‎model; ‎dependence on key suppliers; granting of permits ‎‎and licenses in a highly ‎regulated ‎business; legal proceedings and litigation, including as it relates to the civil ‎‎investigative demand (“CID”) ‎received from the Department of Justice; ‎increased competition; ‎changes in ‎foreign currency rates; the imposition of trade restrictions such as tariffs and retaliatory counter measures; increased ‎‎funding costs and market volatility due to ‎market illiquidity and ‎competition for ‎funding; the ‎availability of funds ‎‎and resources to pursue operations; ‎critical accounting ‎estimates and changes ‎to accounting ‎standards, policies, ‎‎and methods used by the Company; the Company’s status as an emerging growth company and a smaller reporting company; the occurrence of ‎natural and unnatural ‎catastrophic ‎events or health epidemics or concerns; as well as those risk factors ‎discussed or ‎‎referred to ‎in the Company’s disclosure ‎documents filed with ‎United States Securities and Exchange ‎Commission ‎ and ‎available at www.sec.gov, including the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, and with ‎the securities ‎regulatory authorities in certain provinces of ‎Canada and ‎‎‎available at www.sedarplus.com. Should any ‎factor affect ‎the Company in an unexpected manner, or ‎should ‎‎‎assumptions underlying the forward-looking ‎statement prove ‎incorrect, the actual results or events may ‎differ ‎‎‎materially from the results or events predicted. ‎Any such forward-‎looking statements are expressly qualified ‎in their ‎‎‎entirety by this cautionary statement. Moreover, ‎the Company ‎does not assume responsibility for the ‎accuracy or ‎‎‎completeness of such forward-looking ‎statements. The ‎forward-looking statements included in this ‎press release are made as of the date of this press ‎release and the ‎Company undertakes no obligation to publicly ‎update or revise ‎‎‎any forward-looking statements, ‎other than as ‎required by applicable law‎.‎

Non-GAAP Financial Measures

This press release refers to “Adjusted EBITDA” which is a non-GAAP financial measures that does not have standardized meaning prescribed by generally accepted accounting principles in the United States. The ‎Company’s presentation of this financial measure may not be comparable to similarly titled measures used by ‎other companies. This financial measure is intended to provide additional information to investors concerning ‎the Company’s performance.‎

Adjusted EBITDA is calculated as net loss, and adding back depreciation and amortization, right-of-use operating lease amortization and interest, interest expense, net, provision for income taxes, certain professional fees, including those related to the CID, the loss of private issuer status, and proxy contests and other actions of activist shareholders, stock-based compensation, acquisition-related costs, change in fair value of derivative liability – interest rate swaps, loss (gain) on foreign currency transactions, and share of loss in equity method investment.

For further information please visit our website at www.quipthomemedical.com, or contact:

Cole Stevens
VP of Corporate Development
Quipt Home Medical Corp.
859-300-6455
cole.stevens@myquipt.com

Gregory Crawford
Chief Executive Officer
Quipt Home Medical Corp.
859-300-6455
investorinfo@myquipt.com

FAQ

How much did Quipt (NASDAQ:QIPT) pay for Hart Medical Equipment?

Quipt paid $17.4 million for a 60% ownership stake in Hart Medical Equipment, with the transaction funded through senior credit facilities.

What is Hart Medical Equipment's annual revenue and EBITDA?

Hart generates $60 million in annual revenue and $7 million in Adjusted EBITDA, with expectations to reach $10+ million in annual Adjusted EBITDA within 6-9 months.

How many patients does Hart Medical Equipment serve?

Hart Medical Equipment serves more than 67,000 patients monthly, providing a stable and recurring revenue stream.

What will be Quipt's expected revenue after the Hart acquisition?

Following the Hart acquisition, Quipt's expected annualized run-rate revenue will exceed $300 million, with anticipated Adjusted EBITDA over $65 million post-integration.

Who owns the remaining 40% stake in Hart Medical Equipment?

The remaining 40% interest is collectively held by Henry Ford Health, McLaren Health Care, Blanchard Valley Health System, Wood County Hospital, and The Bellevue Hospital.