Quipt Acquires HME Provider Owned by Ballad Health

CINCINNATI, July 07, 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, today announced it has acquired a full-service durable medical equipment (“DME“) provider, which is wholly owned by Ballad Health (the “Acquiree“). Ballad Health is a prominent integrated health system comprised of 20 hospitals, post-acute care and behavioral health services, and a large multi-specialty group physician practice. Ballad Health serves 29 counties of the Appalachian Highlands in Northeast Tennessee, Southwest Virginia, Northwest North Carolina and Southeast Kentucky. The Acquiree reported unaudited revenue of $6.6 million for the fiscal year ended June 30, 2025, serving over 12,500 patients annually through four branch locations across East Tennessee and Southwest Virginia.

This acquisition is a strategic milestone for Quipt as it expands upon Quipt’s traditional acquisition model to form deeper partnerships with healthcare systems. In connection with the acquisition Quipt entered into a preferred provider agreement (the “Preferred Provider Agreement“) with Ballad Health aimed at facilitating seamless post-acute care coordination across the system’s hospitals, further embedding Quipt into the care delivery model and enabling scalable population health solutions. The acquisition brings Quipt a highly synergistic operation with a comprehensive portfolio of respiratory, oxygen, mobility, and home medical products, and a strong diversified payer mix.

Transaction Highlights:

The Acquiree reported unaudited revenue of $6.6 million for the fiscal year ended June 30, 2025, serving over 12,500 patients annually across four branch locations in East Tennessee and Southwest Virginia.
Purchase price of $1.6 million plus the value of accounts receivable and inventory at closing, representing a highly attractive valuation and structured with favorable terms that preserve Quipt’s conservative balance sheet.
Management expects the Acquiree’s Adjusted EBITDA (defined below) margin to align with Quipt’s historical range within two quarters, driven by operational efficiencies, and clinical workflow integration.
Preferred Provider Agreement signed with Ballad Health, an integrated health system operating 20 hospitals across Tennessee, Virginia, North Carolina, and Kentucky.
The Acquiree’s service area is a region with a rapidly growing senior population (65+ age cohort expected to grow 10.2% by 2028).
Provides immediate post-acute referral access from 20 hospitals under the Preferred Provider Agreement, supporting smoother patient discharge and reduced readmissions.
Establishes a scalable health system partnership playbook for future transactions nationwide.
Expected to help accelerate organic growth post integration into Quipt’s operating platform, enhanced referral channels, and geographic density.
Management Commentary:

“Acquiring this Ballad Health owned medical equipment provider and concurrently entering into a Preferred Provider Agreement with Ballad Health exemplifies our commitment to creating lasting, system-wide healthcare partnerships that enhance the delivery of home-based care,” said Greg Crawford, CEO and Chairman of Quipt. “I anticipate that this transaction will help establish a scalable playbook that we can deploy across the country, partnering with leading health systems to integrate care, reduce readmissions, and support patients in the home setting. As we layer in our proven operating model, we see this unlocking meaningful organic growth across the region and providing a national roadmap for future expansion. “We view this as a template for future strategic growth, uniting Quipt’s operational excellence and patient-first approach with health systems’ market expertise and patient relationships. We are steadfast in executing our long-term growth strategy, re-igniting organic growth, and this healthcare-based DME acquisition and Preferred Provider Agreement is a prime example of our resolute focus on increasing long-term shareholder value.”

Chief Financial Officer, Hardik Mehta added, “This transaction was completed using cash on hand at a very prudent purchase price. Post this transaction, we continue to maintain a very conservative balance sheet, allowing for financial flexibility on a go forward basis. The acquisition and Preferred Provider Agreement accelerates our penetration into underserved rural markets and builds on the Company’s strategy of scaling through health system-aligned M&A. Moreover, we are actively in discussions with other healthcare systems with the goal of becoming the partner of choice in home-based care transformation.”

ABOUT QUIPT HOME MEDICAL

The Company provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continue to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. 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. The Company’s organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient’s services, and making life easier for the patient.