Cardinal Health's latest deals won't move the needle overnight. They still matter.
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Cardinal Health announced two acquisitions Monday that could supercharge one of the fastest-growing parts of its business: home care. The global healthcare services company agreed to buy AdaptHealth's diabetes health business and Strive Medical for a combined $360 million in cash. While relatively small for a company of Cardinal Health's size, the transactions are part of Cardinal's larger plan to invest in faster-growing, higher-margin businesses to complement its legacy distribution operations. "Cardinal Health has built a strong track record of acquisitions, and these deals represent a continuation of that strategy," portfolio director Jeff Marks said. The buys come on the heels of two larger deals made in late 2024: the roughly $2.8 billion acquisition of a majority stake in GI Alliance, one of the nation's largest physician practice management organizations, and the $1.1 billion purchase of Advanced Diabetes Supply Group. GI Alliance is part of Cardinal's strategic push to own the business side of medical practices. As a diabetes supplies provider, ADSG aligns with the home-care initiative. The larger of the two acquisitions announced Monday is AdaptHealth's diabetes unit, which serves more than 225,000 patients annually through a direct-to-patient model providing continuous glucose monitors, insulin pumps, and other diabetes supplies. Strive Medical serves more than...
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