CINCINNATI (November 10, 2021)—Quipt Home Medical Corp., a U.S.-based provider of durable medical equipment (DME) focused on end-to-end respiratory care, is pleased to announce that it has recently acquired a business with operations in Illinois, reporting unaudited trailing 12-month annual revenues of approximately $2.5 million. Post integration, Quipt expects an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the acquisition target of $0.6 million.
The acquisition adds a strategic location servicing Central Illinois, a heavily weighted respiratory product mix and over 3,700 active patients. Moreover, the acquisition provides Quipt important insurance contracts and decades of operating experience, with an over 40-year operating track record in the markets served. The business has a diverse payer mix and full suite of products with a focus on respiratory care, representing over 85% of the mix.
The acquisition further expands Quipt’s operations in Illinois after the company entered the market in August of 2020 and provides Quipt a coverage sphere between the major markets of St. Louis, Missouri, and Chicago, Illinois. With the recent acquisitions, the expansionary operating footprint aligns closely with regions that have a high prevalence of COPD, a key target patient group; this includes Arkansas, Mississippi, Missouri and Illinois, which are among the highest prevalence in the U.S. According to the NIH, about 570,000 people in Illinois have COPD.
“Our robust operating engine and proven ability to integrate acquired assets allows us to continue the strong pace of closing strategic acquisitions. Since July we have now completed six acquisitions with combined revenues of over $16 million. Combining these newly acquired entities provides us a pathway to scale into new states with each business having a proven track record in the markets they serve and diversified product mixes. In this short period of time, we have amassed infrastructure in four new states and further penetrated existing states such as Illinois,” said Greg Crawford, Chairman and CEO of Quipt. “This newest transaction in Illinois is another example of our strategy to make tuck-in acquisitions to fill in attractive geographies, obtain important insurance contracts, add to our active patient base and build out our referring physician network. Our current pipeline consists of companies reflective of all three tiers of our previously disclosed acquisition strategy and we are extremely optimistic we will maintain momentum in closing targets that fit the mold.”
The management team in place at the acquisition target has historically focused on a robust service intensive model, centered around patient education and compliance which is highly compatible with Quipt’s operating premise. This acquisition provides immediate cross selling and patient growth opportunities and adds patients to Quipt’s existing subscription-based resupply program.
Under the terms of the definitive purchase agreement, Quipt acquired the DME operation of the business for approximately $1.7 million in cash, and the real estate for $0.5 million. It is expected that post integration the acquisition will increase Quipt’s annual revenues by approximately $2.5 million and adjusted EBITDA by $0.6 million.
Visit quipthomemedical.com for more information.
