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

Core Insights - Quipt Home Medical Corp. has successfully closed a joint venture transaction to acquire a 60% ownership interest in Hart Medical Equipment for a total consideration of $17.4 million, funded by senior credit facilities [1][4] - The acquisition is expected to enhance Quipt's presence in the Midwest, particularly in Michigan, and is aligned with the company's long-term growth strategy [1][3] - Hart Medical generated approximately $60 million in annual revenue and $7 million in Adjusted EBITDA for the twelve months ended June 2025, with expectations to generate over $10 million in annual Adjusted EBITDA in the next 6-9 months [4] Transaction Highlights - The joint venture includes three major health systems and two hospitals, collectively holding the remaining 40% interest in Hart [1] - Hart serves over 67,000 patients monthly, providing a stable and recurring revenue stream [4] - Quipt anticipates that Hart's Adjusted EBITDA margins will align with its historical corporate averages within the next 6-9 months [4] Management Commentary - The CEO of Quipt expressed excitement about the acquisition, highlighting Hart's strong health system relationships and regional market leadership as a strategic fit [3] - The CFO emphasized the disciplined approach to acquisitions and the company's ability to maintain a conservative leverage ratio while funding the transaction [3] - Hart's executive noted the importance of scale in the current healthcare environment and expressed confidence in the partnership with Quipt [5] Financial Expectations - Following the acquisition, Quipt's expected annualized run-rate revenue is projected to exceed $300 million, with anticipated Adjusted EBITDA exceeding $65 million post-integration of Hart [4] - The company plans to consolidate Hart's financial results for reporting purposes, reflecting its status as the primary beneficiary of the joint venture [4]