Quipt Home Medical Soars 40% on $260M Take-Private Deal
The healthcare provider will be acquired by private equity firms Kingswood Capital and Forager Capital in an all-cash transaction at $3.65 per share.
Shares of Quipt Home Medical Corp. (NASDAQ: QIPT) surged nearly 40% in morning trading after the company announced it had entered into a definitive agreement to be taken private by affiliates of Kingswood Capital Management and Forager Capital Management.
The all-cash deal values the home healthcare provider at approximately $260 million, including the assumption of debt. Quipt shareholders will receive $3.65 in cash for each share held, a price that represents a significant premium over recent trading levels.
The offer price marks an approximate 40% premium to the company's closing price of $2.61 on the prior trading day. According to the official announcement, the price is also a 54% premium to the stock's 30-day volume-weighted average price, delivering a substantial return to investors.
Following the news, Quipt's stock price jumped to trade just below the $3.65 acquisition price, a typical market reaction as investors price in the near-certainty of the deal's completion.
Based in Wilder, Kentucky, Quipt Home Medical provides a range of in-home healthcare solutions, specializing in respiratory equipment for patients with chronic conditions. The company's business model has positioned it to capitalize on the growing trend of home-based medical care, which has accelerated due to an aging population and patient preference.
The acquisition by private equity firms Kingswood Capital and Forager Capital will transition Quipt from a publicly traded entity to a privately held company. This move is expected to provide the flexibility and capital to pursue a long-term growth strategy without the pressures and reporting obligations of public markets. Kingswood noted its strategy involves supporting businesses at crucial "inflection points in their development to enhance value," as reported by financial news outlets.
"We are pleased to have reached this agreement with Kingswood and Forager, which delivers a significant, immediate cash premium to our shareholders," said Greg Crawford, Chairman and CEO of Quipt. "This transaction is a testament to the Quipt team’s hard work and dedication. Operating as a private company will enable us to further accelerate our long-term growth initiatives."
The transaction, which was unanimously approved by Quipt's Board of Directors, is not subject to a financing condition. It is expected to close in the first half of 2026, pending customary closing conditions, including approval from Quipt's shareholders and relevant court and regulatory bodies. Upon completion, Quipt's shares will be delisted from the Nasdaq and Toronto Stock Exchange.
The deal represents ongoing interest from private equity in the stable, cash-flow-generating home healthcare sector. As one of the leading providers in the U.S., Quipt's extensive network and clinical-focused service model made it an attractive acquisition target for investors looking to capitalize on durable trends in healthcare delivery.