Quipt acquisition adds new vertical
By HME News Staff
Updated 8:40 AM CST, Tue November 23, 2021
CINCINNATI – Quit Home Medical has executed a non-binding letter of intent to acquire an “arm’s length” private respiratory care company servicing seven states throughout the U.S. reporting unaudited trailing 12-month annual revenues of about $14 million, $1 million in net income and positive adjusted EBITDA.
The acquisition adds a new vertical in long-term care settings, four new states and 165 remote respiratory therapists.
“We continue to strategically work though our robust acquisition pipeline, which has companies reflective of all three tiers of our previously disclosed acquisition strategy,” said Greg Crawford, CEO of Quipt. “This target is an extremely exciting opportunity for us to expand our operating scope to include patients with respiratory related needs in the long-term care setting, which we see as an area of significant growth for years to come. We would leverage our at home care model and anticipate numerous cost and revenue synergies.”
Per the LOI, Quipt expects to close the acquisition for $5 million, plus a $500,000 earn out based on certain targets, payable in cash.
Quipt also announced it is in the final stages of securing a commitment on increasing its debt facility to $100 million to primarily fund large acquisitions and to support working capital.
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