Cardinal Health to buy AdaptHealth diabetes unit and Strive Medical for $360 million

• AdaptHealth's diabetes unit sold for $235 million in cash, providing direct-to-patient platform for diabetes supplies including continuous glucose monitors and insulin pumps
• Strive Medical serves over 20,000 people annually, specializing in urology, wound care, ostomy and adult care supplies
• Analyst noted acquisitions are strategic but the diabetes business will need operational improvements to restore growth and profitability, which Cardinal's scale should help execute

Summary

Cardinal Health Announces $360 Million Dual Acquisition

Cardinal Health disclosed on Monday it will acquire AdaptHealth's diabetes health business and medical supply provider Strive Medical for approximately $360 million combined, significantly expanding its home care operations.

Deal Breakdown:

• AdaptHealth's diabetes unit will cost $235 million in cash
• The remaining amount will go toward purchasing Strive Medical
• Both transactions are expected to be accretive to adjusted earnings per share

Strategic Rationale:

The Dublin, Ohio-based company aims to strengthen its at-Home Solutions business, building on its earlier acquisition of Advanced Diabetes Supply. The AdaptHealth diabetes unit provides continuous glucose monitors, insulin pumps, and related services through a direct-to-patient platform. Strive Medical complements this by enhancing Cardinal's urology business while also offering wound care, ostomy, and adult care supplies to over 20,000 patients annually.

Market Impact:

Leerink Partners analyst Michael Cherny characterized the acquisitions as "logical, strategic tuck-ins," though he noted the diabetes business requires operational improvements to restore growth and profitability. However, he expressed confidence that Cardinal Health's scale would facilitate a successful turnaround.

Key Companies:

• Cardinal Health: Acquirer, expanding home healthcare portfolio
• AdaptHealth: Divesting diabetes health business unit
• Strive Medical: Being acquired to strengthen urology and specialty care offerings

The deals reflect Cardinal Health's continued focus on building its home healthcare capabilities in high-demand segments like diabetes management and urology care, positioning the company for growth in the expanding at-home medical services market.