Quipt Home Medical Corp. announced it has signed a definitive agreement to form a joint venture with three major health systems and two hospitals to acquire Hart Medical Equipment. Quipt will acquire a 60% ownership interest in Hart, with the remaining 40% held by Henry Ford Health, McLaren Health Care, Blanchard Valley Health System, Wood County Hospital, and The Bellevue Hospital.
Hart Medical Equipment reported unaudited revenue of $60 million for the fiscal year ended December 31, 2024, and serves over 100,000 patients annually through 19 locations. This transaction is expected to significantly enhance Quipt’s presence in the Midwest, providing immediate entry into Michigan and expanding its reach in Ohio.
The joint venture structure allows Quipt to collaborate closely with Hart’s leadership while maintaining operational alignment across the broader Quipt platform. This move is consistent with Quipt's strategy to expand its business through strategic relationships with leading health systems.
The transaction is anticipated to be funded using cash on hand and Quipt's existing credit facility. Post-closing, Quipt's annualized run rate revenue is expected to be approximately $310 million, with the joint venture's Adjusted EBITDA projected to be 15-17% of revenue.
Management views this joint venture as a scalable template for future growth nationwide, aiming to set a new standard of care for health systems and DME collaborations. This strategic expansion is expected to drive sustainable growth and optimize financial performance.
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