Quipt Home Medical Corp. announced on January 3 that it has acquired Great Elm Healthcare, LLC, a division of Great Elm Group, Inc., effective December 31, 2022. Great Elm had unaudited revenues for the 12 months ended August 31, 2022, of $60 million with an adjusted EBITDA of $13 million.
The purchase price was $80 million, including $73 million in cash, $5 million in assumed debt and 431,996 Quipt common shares at a deemed price per share equal to $4.63, representing a purchase price of 6x adjusted EBITDA pre-cost savings and synergies. The combination of Quipt and Great Elm has a combined annualized revenue and annualized adjusted EBITDA of $220 million and $47 million, respectively, based on Quipt’s reported audited results for the fourth quarter ended September 30, 2022, and Great Elm’s unaudited results for the 12 months ended August 31, 2022.
The transaction adds cross-selling opportunities in which Quipt may sell products in Great Elm locations, including ventilation and oxygen. Great Elm’s footprint is expected to create additional opportunities to expand Quipt’s access for accretive tuck-in acquisitions.
Great Elm Healthcare operates respiratory-related durable medical equipment service locations across eight states in the Midwest, Southwest and Pacific Northwest.
Quipt Home Medical Corp. is a home medical equipment provider, focused on end-to-end respiratory care. Quipt has 190,000 patients and 20,600 referring physicians as well as more than 90 locations in 19 states. Quipt’s annualized revenue is calculated as Quipt’s total revenues for the three months ended September 30, 2022, of $40 million multiplied by four, or $160 million. According to data captured from the LevinPro HC database, Wilder, Kentucky-based Quipt made six acquisitions during 2022.
