Quipt Home Medical Corp. (Nasdaq: QIPT) has received “an unsolicited, non-binding and conditional and indicative” takeover proposal from Forager Capital Management.
The proposal seeks to acquire all of Quipt’s issued and outstanding common shares, according to the Cincinnati-based Quipt.
In a May 21 announcement, the home medical equipment provider said Forager is proposing to buy “100% of the company’s issued and outstanding common shares at a price of $3.10 per common share.” Quipt was trading at $1.96 per share the morning of May 21.
Various news outlets described the proposal as a hostile takeover attempt, based on Quipt’s announcement.
“It is the company’s policy not to comment on unsolicited offers and is confirming its receipt of the non-binding proposal only because Forager has made it public,” Quipt said, citing a Feb. 1, 2025, non-disclosure and standstill agreement with Forager.
That agreement, Quipt said, stated that Forager and its representatives would not directly or indirectly acquire or propose to acquire Quipt and its assets without the prior approval of Quipt’s board of directors.
“The board did not provide Forager with any prior written approval for a waiver of the confidentiality provision or the standstill provision relating to the issuance of the non-binding proposal,” Quipt said in the announcement.
The company said it does not plan to comment further on the Forager proposal unless legally obligated to do so.
“In consultation with its financial and legal advisors, the Board remains focused on the best long-term interests of the Company to drive sustainable value for its shareholders,” Quipt’s announcement continued.
Quipt Home Medical supplies home medical equipment including sleep apnea systems, ventilators, Complex Rehab Technology, standing and walking aids, and bath safety products. Quipt also provides home accessibility equipment, including ramps and stairlifts.
The provider serves patients along the Pacific coast, as well as the northeast, south, and parts of the Midwest.
Contextually, Quipt is coming off a quarter that didn’t meet Wall Street expectations, with revenue falling to $57.4 million – a 10% year-over-year decline. Even so, Quipt’s leadership has remained bullish on its long-term trajectory, citing macro-demographic tailwinds and its hospital-partnership strategy as some of the factors falling in the company’s favor.
“We are executing with urgency and precision across all opportunities,” CEO Greg Crawford said during an earnings call earlier in May. “We’re not discouraged. On the contrary, we have strong conviction in the fundamentals of our business.”
As of March 31, Forager Capital Management held a concentrated portfolio of 11 publicly disclosed equity positions, totaling about $202 million in value. The firm’s investment strategy emphasizes small-cap companies with potential for significant upside.
Among those holdings are MasterCraft Boat Holdings Inc., Regional Management Corp. and Willdan Group Inc. Forager’s holdings also include Quipt and Viemed Healthcare (Nasdaq: VMD).
