Quipt Home Medical Forms Joint Venture with Three Major Health Systems.

Quipt Home Medical Corp. has signed a definitive agreement with three major health systems and hospitals to form a joint venture. Quipt will acquire a 60% ownership interest in Hart Medical Equipment, with the remaining 40% interest held by major health systems. This strategic transaction is expected to enhance Quipt's presence in the Midwest, add deep healthcare system partnerships, and provide immediate entry into Michigan and new territories in Ohio.

Quipt Home Medical Corp. (NASDAQ: QIPT) has signed a definitive agreement with three major health systems to form a joint venture, acquiring a 60% ownership interest in Hart Medical Equipment. The remaining 40% interest will be held by Henry Ford Health, McLaren Health Care, and Blanchard Valley Health System. This strategic transaction aims to enhance Quipt's presence in the Midwest, add deep healthcare system partnerships, and provide immediate entry into Michigan and new territories in Ohio [1].

The acquisition of Hart Medical Equipment, which generates $60 million in revenue and $7 million in Adjusted EBITDA, marks a significant expansion for Quipt. The deal includes 29 locations across Michigan and Ohio, serving over 67,000 patients monthly. This transaction brings Quipt's expected annualized run-rate revenue to $300 million [1].

The transaction is expected to close by the end of Fiscal Q4 2025. Quipt's management anticipates aligning Adjusted EBITDA margins with historical corporate averages within three quarters post-closing, suggesting confidence in smooth integration and operational synergies [1].

The joint venture integrates Quipt directly into the discharge processes of more than 19 hospitals and affiliated care facilities, creating reliable patient referral channels. This strategic partnership positions Quipt to benefit from evolving reimbursement structures as healthcare shifts toward value-based care models [1].

The transaction structure is financially sound, with Quipt paying $17-18 million for its 60% stake, representing a reasonable multiple of Hart's EBITDA. Management expects to maintain the company's historical EBITDA margins within three quarters post-closing [1].

This joint venture advances Quipt's strategy of becoming deeply embedded in healthcare system discharge planning and care coordination. The deal establishes Quipt's first foothold in Michigan, a large and previously untapped market for the company, while also strengthening its presence in northern Ohio. With 29 additional locations, this dramatically expands Quipt's Midwest footprint and increases its scale advantages in the region [1].

The transaction is expected to close by the end of Fiscal Q4 2025. Quipt's management anticipates aligning Adjusted EBITDA margins with historical corporate averages within three quarters post-closing, suggesting confidence in smooth integration and operational synergies [1].

References:
[1] https://www.stocktitan.net/news/QIPT/quipt-home-medical-partners-with-three-major-health-systems-to-form-9jly5ylwgb95.html