Quipt Home Medical to form JV with three health systems

Executive Summary

• Quipt Home Medical Corp. has signed a definitive agreement to acquire a 60% ownership interest in Hart Medical Equipment, a leading durable medical equipment (DME) supplier, forming a strategic joint venture.
• The transaction provides Quipt with immediate entry into the Michigan and Ohio markets, adding 29 branch locations and deepening partnerships with major health systems including Henry Ford Health, McLaren Health Care, and Blanchard Valley Health System.
• Quipt expects to consolidate Hart’s financial results, increasing its expected annualized run-rate revenue to approximately $300 million, with total consideration for the 60% stake ranging between $17 million and $18 million.

Key Details

• Transaction Structure: Quipt acquires 60% of Hart Medical Equipment; the remaining 40% is held collectively by major health systems (Henry Ford Health, McLaren Health Care, Blanchard Valley Health System, Wood County Hospital, and The Bellevue Hospital).
• Consideration: Total consideration for the 60% ownership interest is in the range of $17 million to $18 million.
• Funding: The transaction is expected to be funded using cash on hand and Quipt’s existing credit facility.
• Closing Conditions: Expected to close by the end of fiscal Q4 2025, subject to customary conditions, including approval by the lender to Quipt’s existing credit facility.
• Hart Financials (12 months ended June 2025):
  • Revenue: Approximately $60 million.
  • Adjusted EBITDA: Approximately $7 million.
• Quipt Pro Forma Financials: Upon consolidation, Quipt’s expected annualized run-rate revenue will be approximately $300 million.
• Operational Footprint:
  • Hart has 29 branch locations across Michigan and Ohio.
  • The transaction expands Quipt’s service network to more than 19 hospitals and affiliated care facilities.
  • Hart serves over 67,000 patients monthly.
• Strategic Impact:
  • Establishes Quipt’s presence in Michigan and northern Ohio.
  • Strengthens relationships with integrated health systems and freestanding community-based hospitals.
  • Embeds Quipt into hospital discharge processes and care coordination.
• Synergies and Margins: Management expects adjusted EBITDA margin to align with historical corporate averages within three quarters post-closing, driven by operational efficiencies and cross-market integration.
• Accounting Treatment: As the primary beneficiary, Quipt will consolidate Hart’s financial results; the 40% non-controlling equity interest will be reported as a separate component on the consolidated statements of financial position.

Notable Quotes

• Greg Crawford, CEO and Chairman of Quipt: "This transaction expands our service network to more than 19 hospitals and affiliated care facilities, dramatically increasing our ability to serve patients at critical points of care transition... This move is consistent with our strategy to expand our business with strategic relationships with leading health systems... Hart's reputation for clinical excellence and strong health system alignment fits perfectly with our mission and platform."
• Hardik Mehta, CFO of Quipt: "This joint venture marks a significant step forward in expanding our platform in a disciplined and strategic manner... This is exactly the type of health-system-aligned expansion we have been targeting, and we are confident that the Hart joint venture will serve as a repeatable model for future joint ventures..."
• Barton P. Buxton, EdD, Board Chair, Hart Medical: "Of all the potential partners, Quipt Home Medical demonstrated the strongest platform and shared commitment to continue and expand the important work Hart Medical has begun... we are confident that our alliance with Quipt Home Medical will strengthen our ability to deliver exceptional patient outcomes and innovative solutions."