Quipt closes acquisition of 60% of Hart

Mr. Gregory Crawford reports QUIPT HOME MEDICAL COMPLETES STRATEGIC ACQUISITION OF HART MEDICAL ADDING $60 MILLION IN REVENUE Quipt Home Medical Corp. has closed its previously announced joint venture transaction with three major health systems and two hospitals to acquire Hart Medical Equipment. Quipt has acquired a 60-per-cent ownership interest in Hart, with the remaining 40-per-cent 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-per-cent ownership interest in Hart for total consideration of $17.4-million, which was financed by senior credit facilities. Hart generated approximately $60-million in annual revenue and $7-million in adjusted earnings before interest, taxes, depreciation and amortization for the 12 months ended June, 2025, and expects to generate $10-million-plus in annual adjusted EBITDA over the next six to nine months. Management anticipates Hart's adjusted EBITDA margins will align with Quipt's historical corporate averages over the next six to nine months. For reporting purposes, Quipt expects to consolidate the financial results of Hart. Accordingly, Quipt's expected annualized run-rate revenue is in excess of $300-million. Upon successful integration of Hart over the next six to nine 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-per-cent non-controlling equity interest will be reported as a separate component on the company's consolidated statements of financial position. Hart maintains long-standing strategic relationships with leading integrated health systems, including Henry Ford Health, McLaren Health Care and Blanchard Valley Health, as well as free-standing 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, chief executive officer 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 health-care-system-focused growth strategy," said Hardik Mehta, chief financial officer 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 health care 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-centred 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 adviser for Hart. About Quipt Home Medical Corp. The company provides in-home monitoring and disease management services, including end-to-end respiratory solutions for patients in the U.S. health care 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. We seek Safe Harbor.