WILDER, Ky. – The battle for control of Quipt Home Medical is escalating, with the company reportedly filing a lawsuit against one of its largest shareholders, Forager Capital Management. This legal action comes as Forager continues its push to acquire Quipt, maintaining its current offer of $3.10 per share in cash.
In late August, Quipt rejected Forager’s offer, calling it the latest in a series of “self-serving inferior and declining offers.” Quipt pointed out that Forager had previously offered $3.90 per share, a higher price that came before Quipt’s recent acquisitions, which include a DME provider from Ballad Health and a 60% ownership stake in Hart Medical.
According to Forager, the reduced offer of $3.10 per share is a response to a “material decline in free cash flow” and what it calls the board’s “massively dilutive, self-serving equity grants.” Forager claims its offer reflects the drop in Quipt’s stock price since the acquisition announcements.
Forager stated that the company’s board should negotiate a deal with them or another bidder to create shareholder value. They added that every day the board delays “reduces the IRR for shareholders” and is, “by definition, destruction of shareholder value.”
In a recent financial results call, Quipt reported that it now serves over 325,000 active patients across 160 locations in 27 states, with respiratory care making up 75% of its product mix.
