Quipt Reaches Significant Milestone with Fresh Acquisition and Announces new EVP of Operations
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Quipt Home Medical Corp. (NASDAQ: QIPT; TSXV: QIPT) announced that it has recently acquired a business with operations in Mississippi, reporting unaudited trailing 12-month annual revenues of approximately $2.7 million. Post integration, Quipt expects an adjusted EBITDA for the acquisition target of $0.5 million.
The acquisition adds 2 locations, over 4,000 active patients, more than 10,000 unique orders, and 590 unique referring physicians. The acquisition provides Quipt with important insurance contracts and decades of operating experience, with an over 30-year operating track record in the markets served. The business has a diverse payor mix and a full suite of products with a focus on respiratory care, representing over 65% of the mix.
The acquisition provides Quipt the ability to quickly expand on the recently acquired business in Mississippi in July of 2021. This acquisition provides immediate access to additional attractive markets in which Quipt intends to leverage its existing infrastructure to create cross-selling and patient growth opportunities. In addition, Quipt will add patients to Quipt’s existing subscription-based resupply program, and Quipt expects to derive strong revenue synergies from this initiative.
Of the move, Greg Crawford, Chairman, and CEO of Quipt, had this to say, “We continue to focus on accretive acquisition candidates that fit our stringent acquisition criteria to build scale across the United States. Our proven integration strategy allows us to make tuck-in acquisitions like this to fill in attractive geographies, obtain important insurance contracts, add to our active patient base and build out our referring physician network. With the closing of this transaction, we have reached a significant milestone of 150,000 active patients and 19,000 referring physicians.”
Quipt now has about 150,000 current active patients with 19,000 referring physicians at 62 locations across 15 U.S. States.
Under the terms of the definitive purchase agreements, Quipt acquired the business for approximately $1.95 million in cash. It is expected that the acquisition will increase Quipt’s annual revenues by approximately $2.7 million. The burgeoning home medical device sector, which includes companies like Medtronic PLC (NYSE: MDT) and Abbott Laboratories (NYSE: ABT), was valued at $30 million in 2019 and is estimated to reach $56 million by 2027.
New EVP
Quipt also announced the addition of David Bachelder to serve as EVP of Operations. Mr. Bachelder is a results-oriented healthcare executive with a proven ability to achieve optimal performance, compliance, and profits across multi-site operations. He is highly experienced in managing multi-million-dollar budgets, financials, sales, operations, and clinical compliance.
“We are extremely excited to add David at this important time, given his strong background and industry experience. David will be instrumental to our future growth and assist us in building our operating footprint throughout the United States,” Crawford stated.
David comes from one of the largest home medical equipment companies in the industry, where he served as Regional Vice President. David will be key in Quipt’s ongoing plan to optimize operations, technologies, systems, and processes.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
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