Quipt closes acquisition of 60% of Hart

Executive Summary

• Quipt Home Medical Corp. has closed its previously announced joint venture transaction to acquire a 60% ownership interest in Hart Medical Equipment, financed by senior credit facilities.
• The acquisition adds approximately $60 million in annual revenue and $7 million in adjusted EBITDA (for the 12 months ended June 2025) to Quipt’s portfolio.
• Quipt will consolidate Hart’s financial results, bringing its expected annualized run-rate revenue in excess of $300 million and anticipated adjusted EBITDA in excess of $65 million post-integration.

Key Details

• Transaction Structure: Quipt acquired a 60% controlling interest in Hart Medical Equipment; the remaining 40% is held collectively by Henry Ford Health, McLaren Health Care, Blanchard Valley Health System, Wood County Hospital, and Bellevue Hospital.
• Consideration: Total consideration of $17.4 million, financed entirely by senior credit facilities.
• Financial Performance (Hart):
  • Generated approximately $60 million in annual revenue.
  • Generated $7 million in adjusted EBITDA for the 12 months ended June 2025.
  • Expected 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.
• Pro Forma Impact:
  • Quipt expects to consolidate Hart’s financial results.
  • Expected annualized run-rate revenue is in excess of $300 million.
  • Upon successful integration (6–9 months), Quipt’s adjusted EBITDA is anticipated to be in excess of $65 million.
  • The 40% non-controlling equity interest will be reported as a separate component on the consolidated statements of financial position.
• Operational Metrics:
  • Hart serves more than 67,000 patients monthly.
  • Hart is embedded in the hospital discharge processes of more than 19 hospitals and affiliated care facilities across its network.
• Strategic Rationale: The acquisition provides Quipt with a major entry into Michigan and expanded reach across the Midwest, leveraging Hart’s strong relationships with leading integrated health systems.
• Advisors: The Braff Group served as exclusive financial adviser for Hart.

Notable Quotes

• Greg Crawford, CEO and Chairman: "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."
• Hardik Mehta, CFO: "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..."
• Allen Hunt, Hart Medical Executive: "In Quipt, we found that partner. Quipt brings more than just scale. Their patient-centred leadership, innovative mindset and cultural alignment with our own make them an ideal match."