- Quipt Home Medical Corp. (QIPT) has executed a non-binding letter of intent (LOI) to acquire a private respiratory care company servicing seven states throughout the U.S.
- The acquisition would be expected to increase Quipt’s annual revenues by approximately $14 million
- The target company specializes in providing high-quality, comprehensive respiratory care to patients in the long-term care setting including ventilator management, equipment, oxygen and providing supplies
- Quipt anticipates purchasing power advantages to bring down the cost of respiratory equipment, and cross selling opportunities to service additional patient needs with complimentary equipment, and supplies
- Quipt expects to close the acquisition for $5 million plus a $500,000 earn out based on certain revenue targets, payable in cash, that would immediately be accretive to the company’s adjusted EBITDA and net income
- Quipt Home Medical Corp. (QIPT) is down 0.80 per cent and is trading at $8.59 per share as of 4:01 p.m. ET
Quipt Home Medical (QIPT) has executed a non-binding LOI to acquire a private respiratory care company servicing seven states throughout the U.S.
The acquisition would be expected to increase Quipt’s annual revenues by approximately $14 million and $1 million in net income before synergies.
Quipt expects to generate additional revenue from organic growth, cross-selling, and corporate synergies.
The target company specializes in providing high-quality, comprehensive respiratory care to patients in the long-term care setting including ventilator management, equipment, oxygen and providing supplies.
It also employs 165 remote respiratory therapists which would significantly bolster an already robust Quipt clinical team.
The target represents a new business vertical for Quipt, which would leverage the company’s highly successful clinical respiratory care platform serving patients in the home, into the long-term care setting.
Quipt anticipates its purchasing power to bring down the cost of respiratory equipment, and cross-selling opportunities to service additional patient needs with complementary equipment, and supplies.
The target company would expand Quipt’s reach, offerings, and allow for the company to access more sales touchpoints, which it anticipates will benefit its current business.
Quipt expects to close the acquisition for $5 million plus a $500,000 earn out based on certain revenue targets, payable in cash, that would immediately be accretive to the company’s adjusted EBITDA and net income.
Quipt would not assume any long-term debt of the target in connection with the acquisition.
Quipt Home Medical Corp. (QIPT) is down 0.80 per cent and is trading at $8.59 per share as of 4:01 p.m. ET.
