Quipt Goes Private in $260M Deal, Signaling PE Growth Push

CINCINNATI, OH – December 15, 2025 – In a move that underscores the intense private equity appetite for the home healthcare sector, Quipt Home Medical Corp. has agreed to be acquired by affiliates of Kingswood Capital Management and Forager Capital Management. The all-cash transaction, valued at approximately US$260 million including debt, will take the respiratory care provider private and deliver a significant return to its public shareholders.

The definitive agreement announced today sets a purchase price of US$3.65 per share. This figure represents a staggering 162% premium over Quipt's stock price on May 19, 2025, the last trading day before Forager Capital initially disclosed a proposal, and a 54% premium to its 30-day volume-weighted average price as of December 12. The deal provides immediate liquidity and certainty of value, marking a pivotal moment for the company and a clear signal of consolidation trends sweeping the durable medical equipment (DME) market.

A Premium Payoff After a Strategic Review

The journey to this definitive agreement was a carefully navigated process. Quipt's Board of Directors, following a comprehensive review with its financial advisor, Truist Securities, unanimously concluded that the transaction is in the best interest of its shareholders. The decision was supported by fairness opinions from both Truist and Evans & Evans, Inc., validating the financial terms of the buyout.

The history of the deal adds important context. Forager Capital Management, now a partner in the acquisition, had previously approached Quipt with unsolicited offers, including a $3.10 per share proposal in May 2025. The final agreed-upon price of $3.65 per share demonstrates the board's success in negotiating a substantially higher valuation.

Greg Crawford, Chairman and CEO of Quipt, framed the outcome as the culmination of the board’s commitment to shareholder value. "The Board has consistently demonstrated its commitment to maximizing shareholder value, and we believe this transaction achieves that objective by providing substantial and assured value to our shareholders," he stated. Directors, executive officers, and Forager itself, who collectively hold over 20% of Quipt's shares, have entered into voting agreements to support the transaction, smoothing its path toward approval.

This high-premium exit highlights the intrinsic value that specialized private equity firms see in established home care platforms. For investors, it serves as a case study in how a board can leverage competitive interest to secure a lucrative outcome, even after initial offers were deemed insufficient.

Private Equity Doubles Down on Home Healthcare

The acquisition is more than just a financial transaction for a single company; it is emblematic of a powerful trend shaping the future of healthcare delivery. Private equity firms are increasingly deploying capital into the home healthcare and DME space, drawn by powerful market dynamics. The U.S. home medical equipment market, valued at nearly $36 billion in 2024, is benefiting from an aging population, a rising prevalence of chronic conditions like COPD and sleep apnea, and a systemic push toward cost-effective, patient-centric care outside of traditional hospital settings.

Kingswood Capital Management, the lead equity partner, fits the profile of a strategic buyer in this environment. The Los Angeles-based firm specializes in public-to-private transactions and has a "buy-and-build" playbook, often acquiring platform companies in fragmented markets and growing them through subsequent M&A. Its recent agreement to acquire Drive DeVilbiss Healthcare, a global medical products manufacturer, signals a clear strategic focus on the sector.

By taking Quipt private, the new owners can shield the company from the short-term pressures of quarterly earnings reports and public market volatility. This freedom allows management to focus on long-term strategic investments in technology, clinical infrastructure, and, most notably, acquisitions. The home respiratory care market, projected to double in size to over $32 billion by 2034, remains highly fragmented, with numerous smaller regional providers that are prime targets for consolidation.

Fueling the Engine for Future Growth

The new ownership has been explicit about its intentions. In a joint statement, Kingswood Partner Michael Niegsch and Forager Partner Johnny Wilhelm praised Quipt’s "high quality, scaled respiratory care platform" and its patient-centric model. Crucially, they declared their plan to "reignite the M&A engine to expand in strategic markets, while continuing to invest in people, technology, and best-in-class clinical care."

This statement is the core of the strategic thesis. Quipt, which currently operates in 27 states and ranks among the top ten DME providers in the U.S., has already used acquisitions to fuel its growth. Under private ownership with deep-pocketed sponsors, this strategy is set to accelerate dramatically. The infusion of capital and operational expertise from Kingswood can empower Quipt to pursue larger and more complex deals, solidifying its market share against national competitors like Lincare and Apria Healthcare.

The focus on technology is also critical. The future of home healthcare lies in integrated platforms that combine remote patient monitoring, telehealth, and data analytics to improve outcomes and manage chronic conditions proactively. Being private will allow Quipt to make the necessary long-term R&D and capital expenditures to build out these capabilities without worrying about the immediate impact on quarterly profits. This could transform its service model, which already boasts a recurring revenue base of approximately 78%, into an even more durable and technologically advanced platform.

Navigating the Path to a Private Future

Before this new chapter can begin, the transaction must clear several procedural hurdles. The deal will be implemented through a statutory plan of arrangement and requires approval from the court and Quipt's shareholders. A special meeting will be held where the transaction must be approved by at least two-thirds of the votes cast by shareholders, as well as a simple majority that excludes certain insiders as required by securities regulations.

Given the unanimous board recommendation and the significant voting support already locked in from key stakeholders, shareholder approval is widely expected. The transaction, which is not subject to any financing conditions, is anticipated to close in the first half of 2026.

Upon completion, Quipt's shares will be delisted from both the NASDAQ and the Toronto Stock Exchange, and the company will cease to be a reporting issuer in the U.S. and Canada. For the healthcare industry and its investors, the transformation of Quipt from a public entity into a private, M&A-focused powerhouse will be a key development to watch as the consolidation of the home healthcare landscape continues to accelerate.