Great Elm Healthcare sells to Quipt for $80M

 WALTHAM, Mass. – Great Elm Group has sold its DME business, Great Elm Healthcare, to QHM Holdings, Inc., a wholly owned subsidiary of Quipt Home Medical Corp., for $80 million. 

GEG has also announced it has sold a majority of its ownership interest in Forest Investments, Inc. to J.P. Morgan Broker-Dealer Holdings Inc., for approximately $18 million. 

“The successful sale of our DME business and the recently announced Forest transaction are transformative for Great Elm,” said Jason Reese, executive chairman of GEG. “When combined, the two transactions are expected to increase holding company cash by over $70 million. This allows Great Elm to dedicate more resources to scaling its Investment Management business, utilizing the expertise and relationships of our board and management team. We continue to evaluate various strategies which could include investments in our existing funds or the acquisition of the management rights of new, long-duration capital vehicles. Additionally, the sale simplifies our reporting and organizational structure.” 

The DME division was formed in September 2018 when Great Elm Capital partnered with Mesa, Ariz.-based Valley Healthcare Group to acquire Portland, Ore.-based Northwest Medical and combine the two companies.  

Greg Crawford, CEO of Quipt, says the deal is another step toward the company becoming a national provider of HME focused on end-to-end respiratory care. 

“Combining two respiratory care providers with demonstrated track records of enterprise growth, technology innovation, and patient service allows us to build and improve on our patient-centric ecosystem,” he said. 

Terms of the deal include approximately $73 million in cash, $5 million in assumed indebtedness and 431,996 shares of Quipt common stock valued at $2 million using a 20-day volume-weighted average price. 

Great Elm received approximately $26 million in net cash proceeds and 346,028 shares of Quipt common stock after payment of all obligations in connection with the transaction. 

• Read what John Ehlinger, CEO of the DME division, had to say about Great Elm Capital’s interest in the market.