Key facts
- Cardinal Health will purchase AdaptHealth's diabetes health business and Strive Medical for a combined $360 million.
- The acquisitions are intended to bolster Cardinal Health's at-Home Solutions segment.
- AdaptHealth's diabetes unit offers continuous glucose monitors, insulin pumps, and related services.
- Strive Medical provides supplies for urology, wound care, ostomy, and adult care.
- Cardinal Health expects the deals to positively impact its adjusted earnings per share within the first year post-closing.
Cardinal Health announced on Monday its agreement to acquire AdaptHealth's diabetes health business and the medical supply provider Strive Medical for a combined total of approximately $360 million. These acquisitions are designed to expand Cardinal Health's at-Home Solutions business and complement its prior purchase of Advanced Diabetes Supply.
The AdaptHealth diabetes unit supplies devices such as continuous glucose monitors and insulin pumps, along with associated services for individuals managing diabetes. Strive Medical, which serves over 20,000 people annually, specializes in urology, wound care, ostomy, and adult care supplies. The deal for the diabetes unit alone is valued at $235 million in cash.
Analysts view the acquisitions as strategic additions for Cardinal Health. Michael Cherny of Leerink Partners noted that while the deals are logical, the diabetes business will require operational enhancements to regain growth and profitability, a turnaround that Cardinal Health's scale is expected to facilitate. Cardinal Health anticipates these transactions will contribute positively to its adjusted earnings per share within the first year after closing.