Quipt Home Medical forms JV with 3 health systems, adds $60mln revenue.

• Quipt Home Medical partners with three major health systems to form a joint venture. • Adds $60 million in revenue, 29 locations, and deep health system relationships. • Marks entry into Michigan market. • Quipt acquires a 60% ownership interest in Hart Medical Equipment. • Remaining 40% interest held by major health systems. • Joint venture aims to expand respiratory care services.

CINCINNATI, Aug. 12, 2025 — Quipt Home Medical Corp. (“Quipt” or the “Company”) (NASDAQ: QIPT; TSX: QIPT), a U.S.-based home medical equipment provider focused on end-to-end respiratory care, has announced a strategic joint venture with three major health systems and hospitals. This partnership will enhance Quipt’s presence in the Midwest, add deep healthcare system relationships, and facilitate entry into the Michigan market.

The joint venture involves Quipt acquiring a 60% ownership interest in Hart Medical Equipment (“Hart”), a leading durable medical equipment supplier with over 20 years of experience. Hart, headquartered in Michigan, generated approximately $60 million in revenue and $7 million in Adjusted EBITDA for the twelve months ended June 2025. The acquisition includes 29 branch locations across Michigan and Ohio, bolstering Quipt’s Midwest footprint and establishing its presence in Michigan and northern Ohio.

Upon completion of the transaction, Quipt expects its annualized run-rate revenue to be approximately $300 million. The remaining 40% interest in Hart will be held collectively by major health systems, including Henry Ford Health, McLaren Health Care, Blanchard Valley Health System, Wood County Hospital, and The Bellevue Hospital. This structure allows Quipt to maintain operational alignment while leveraging Hart’s established relationships with leading integrated health systems.

The joint venture aims to strengthen Quipt’s strategy of expanding relationships with healthcare systems and building scalable integration models that embed Quipt into discharge planning and care coordination. It positions Quipt in the evolving healthcare reimbursement environment, working alongside health systems heavily invested in value-based care. Management expects Adjusted EBITDA margin to align with historical corporate averages within three quarters post-closing, with synergies anticipated through operational efficiencies and cross-market integration.

Quipt’s expected total consideration for its 60% ownership interest is in the range of $17-18 million, to be funded using cash on hand and its existing credit facility. The transaction is expected to close by the end of Fiscal Q4, 2025, subject to customary closing conditions.

Barton P. Buxton, Ed.D., Board Chair of Hart Medical, stated, “The Hart Medical board was very focused on finding the right strategic partner to align with our mission of caring for patients at home following their discharge and supporting their ongoing transitional care needs. Quipt Home Medical demonstrated the strongest platform and shared commitment to continue and expand the important work Hart Medical has begun.”

Greg Crawford, CEO and Chairman of Quipt, added, “This transaction expands our service network to more than 19 hospitals and affiliated care facilities, dramatically increasing our ability to serve patients at critical points of care transition. Importantly, the joint venture structure allows us to collaborate closely with Hart’s leadership team while maintaining operational alignment across the broader Quipt platform.”

Hardik Mehta, Chief Financial Officer of Hart, commented, “This joint venture marks a significant step forward in expanding our platform in a disciplined and strategic manner. We anticipate funding this transaction using cash on hand and our existing credit facility. As we integrate operations, we see clear opportunities to align operating systems and share best practices that will enhance operational efficiency, support sustainable growth, and optimize financial performance.”

Quipt Home Medical provides in-home monitoring and disease management services, including end-to-end respiratory solutions for patients in the United States healthcare market. The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management.

References:
[1] https://www.nasdaq.com/press-release/quipt-home-medical-partners-three-major-health-systems-form-strategic-joint-venture