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Quipt announces LOI, increases guidance

Quipt announces LOI, increases guidance

CINCINNATI – Quipt Home Medical has executed a non-binding letter of intent to acquire “an arm’s length” private respiratory company in the Midwestern United States with 15,000 active patients. 

The company reported unaudited trailing 12-month annual revenues of about $13 million, $1.6 million in net income and positive adjusted EBITDA. 

“This acquisition target is very powerful as it services a significant metro hub in the Midwest and after closing, we plan on quickly integrating their business operations and leveraging the company’s payer contracts across our existing Midwest locations,” said Greg Crawford, CEO. “Additionally, we expect to see cross-selling growth from lathering on our clinical ventilation therapy program as an extension to their existing respiratory product mix.” 

Quipt expects the acquisition to be accretive to its adjusted EBITDA and overall profitability, adding $13 million to the top-line and $1.6 million in net income. 

Based on current business, market trends and completed and prospective acquisitions, the company expects run-rate revenue for the end of calendar year 2022 of $180 million to $190 million with $38 million to $43 million in adjusted EBITDA. 

“This considerable increase stems from the ongoing strength of the business, favorable industry dynamics and robust acquisition pipeline,” said Hardik Meta, CFO. “As a reminder, our balance sheet remains very solid with over $30 million in cash and an untapped $20 million credit facility, giving us ample flexibility as we continue on our strategic path.” 


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