Quipt Home Medical agrees to buy out 

CINCINNATI – Quipt Home Medical has agreed to be bought out by a special-purpose acquisition vehicle (SPAC) funded by two investment firms: Kingswood Capital Management and Forager Capital Management. 

As part of the deal, the company’s shareholders will receive $3.65 per share in cash, representing a 162% premium to the company’s unaffected stock price on May 19, the last full day of trading prior to the public disclosure of Forager Capital’s $3.10 per share proposal, and a 54% premium to its 30-day volume weighted average price as of Dec. 12. 

The transaction values Quipt Home Medical at about $260 million, including the company’s outstanding debt. 

Commentary from Greg Crawford, chairman and CEO: 

“The board has consistently demonstrated its commitment to maximizing shareholder value, and we believe this transaction achieves that objective by providing substantial and assured value to our shareholders. I extend my sincere gratitude to the entire Quipt team; your dedication, compassion and drive have been fundamental to all our accomplishments. Looking forward, the future is exceptionally promising, with Quipt’s established legacy of outstanding in-home respiratory care poised for even greater growth in the future.” 

Commentary from Michael Niegsch, partner, Kingswood Capital; and Johnny Wilhelm, partner Forager Capital: 

“Quipt has built a high quality, scaled respiratory care platform defined by its patient-centric care model, durable referral relationships and attractive recurring revenue base. We are excited to partner with Greg Crawford, Hardik Mehta, and the entire Quipt team to support the company’s next chapter of growth as a privately held company. We look forward to reigniting the M&A engine to expand in strategic markets, while continuing to invest in people, technology, and best-in-class clinical care.” 

Following the transaction, Quipt Home Medical will become a privately held company and cease to report in the U.S. and Canada. 

Background: 

Quipt Home Medical and Forager Capital have had a contentious relationship. 

• Quipt Home Medical announced in May that it had received an unsolicited non-binding and conditional and indicative proposal from Forager Capital to acquire 100% of the company’s issued and outstanding common shares for $3.10 per common share.   
• In August, Forager Capital updated its offer.  
• A month later, in September, Quipt Home Medical reportedly filed suit against Forager Capital.