QIPT - Quipt Announces Multi-State Acquisition Adding Approximately $9 Million in Annualized Revenues and Anticipated $2 Million in Adjusted EBITDA Post Integration | Benzinga
CINCINNATI, Sept. 11, 2023 (GLOBE NEWSWIRE) -- 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, is very pleased to announce that it has acquired a business with operations in Mississippi, Texas and Louisiana reporting unaudited annual revenues (12 months ending June 30, 2023) of approximately $9 million ?with anticipated Adjusted EBITDA (defined below) of $2 million post integration. As a reminder all financial figures stated are in USD.
Acquisition Details
The acquisition adds scale with ten locations across three states, 17,500 active patients, 1,900 unique referring physicians, important insurance contracts, and decades of operating experience in the markets served. This acquisition allows the Company to further penetrate key sales touch points in major target markets across Mississippi, Texas and Louisiana and is expected to assist with organic growth initiatives in those markets post-integration. Moreover, the business has a diverse payor mix and a heavily weighted respiratory product mix.
The operating footprint aligns closely with regions that have a high prevalence of Chronic Obstructive Pulmonary Disease ("COPD"), a key target patient group. According to National Institutes of Health (NIH) about 1.5 million people across the three states have COPD1. As a growing leader in clinical respiratory care, the favorable demographics, additional insurance contracts and infrastructure, afford Quipt the ideal conditions to accelerate its national expansion efforts.
The Company is pleased to share the following updated metrics on a consolidated basis taking into consideration the acquisition disclosed herein:
- 287,500 current active patients
- 34,400 referring physicians
- 125 locations across 26 U.S. States
Additionally, the acquisition adds significant opportunity to increase resupply revenue once sleep patients are onboarded to Quipt's robust resupply program and the acquisition footprint is expected to create additional opportunities to expand Quipt's access for accretive tuck-in acquisitions.
The acquisition increases Quipt's current annual revenues by approximately $9 million and is expected to increase Quipt's Adjusted EBITDA, post integration, by $2 million. The acquisition purchase price is at historical multiples paid by the Company.
Management Commentary
"The completion of this transaction demonstrates our ongoing patience and discipline as it relates to our capital allocation approach. At favorable terms, we were able to significantly expand in three attractive existing states. Given that there are more than 1.5 million COPD patients residing in Mississippi, Texas and Louisiana, we increase our footprint in those three states," said Greg Crawford, Chairman and CEO of Quipt. "Our team of operators will once again utilize our tried-and-true integration approach to efficiently integrate this business onto our existing platform, continuing to build scale across the organization. Moreover, we believe there is an opportunity to leverage our resupply program immediately, creating actionable revenue synergies for us. Additionally, the substantial patient base and excellent referral network we have built up in these three states allow us to take a "land and expand" approach to future growth, which will support our organic growth goals."
Chief Financial Officer, Hardik Mehta added, "This accretive transaction checks all ...