Quipt Acquiring Indiana Based Respiratory Company Adding $13 Million in Revenue, Increasing Patient Count By 15,000

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Quipt Home Medical Corp. QIPT, a supplier of home medical equipment with a  focus on respiratory care, will acquire Indiana-based At Home Health Equipment Inc., increasing its patient count by about 10% in the process.

With the purchase, the company will add about 15,000 new patients, bringing its total patient count to about 170,000. The acquisition also gives Quipt access to a new market in Indianapolis that will become the company’s largest single market in terms of revenue. The $13.1 million all-cash acquisition is expected to increase Quipt’s annual revenue by about $13 million and its net income by $1.6 million. With the acquisition, the company’s 2022 run-rate revenue is expected to surpass $130 million.

The focus of the acquisition will largely be on patients suffering from chronic obstructive pulmonary disease (COPD) with about 443,000 people in Indiana dealing with the condition, according to Quipt.

Quipt also will have opportunities to operate in the hospice segment as At Home Health derives 30% of its revenue from that sector. In addition, Quipt will be able to develop its clinical ventilation therapy program for existing At Home Health patients.

“This is a significant acquisition as it creates the largest single market for us in a very attractive region,” said Quipt CEO Greg Crawford. “Our operating engine and proven ability to integrate acquired assets allows us to continue the strong pace of closing larger strategic acquisitions during this exciting growth period.”

“We are also excited to enter the hospice segment,” added Mr. Crawford, “with over 30 percent of At Home Health Equipment’s revenue coming from this high growth area and we will strategically work to build this vertical out over the course of 2022.”

“This exciting, respiratory care company strategically assists us in gaining market share in this favorable Midwest region where there is a high prevalence of COPD patients and a significant opportunity to leverage our service-intensive model,” said Hardik Mehta, chief financial officer at Quipt.

Quipt Busy Growing Through Acquisitions?

The At Home Health acquisition will build on other recent purchases by Cincinnati-based Quipt.

The company, which has operations focused in the Midwest as well as in some Northeastern and Southern states such as South Carolina and Georgia, has been on an acquisition focus in recent months.

During the second half of the year, the company completed seven acquisitions representing a combined revenue of more than $17.5 million since July. Quipt will continue to look for other acquisition opportunities while integrating its recent purchases.

“Our team is focused on integration efforts across our recently acquired businesses, and we are pleased with the progress to date,” said Greg Crawford, chairman, and CEO. “We have a robust platform that allows for organic and inorganic growth opportunities to be efficiently layered on to generate economies of scale, and we will continue to stay nimble with the opportunities in front of us.”

The company reported revenue of approximately $28 million in the quarter ending Sept. 30 and says it remains on track to record annual revenue of between $180 million to $190 million by the end of calendar year 2022.

More details about the At Home Health acquisition can be found here. Other leading respiratory care companies include Apria Inc. APR and Lincare Holdings, owned by Linde plc LIN.

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