Cardinal Health said on Monday it has agreed to buy AdaptHealth’s diabetes health business and medical supply provider Strive Medical in separate deals for about $360 million in total, expanding its home care business.
Here are some details
- The Dublin, Ohio-based company said the acquisitions would expand its at-Home Solutions business and build on its earlier purchase of Advanced Diabetes Supply.
- AdaptHealth’s Diabetes Health business provides devices such as continuous glucose monitors and insulin pumps, along with related services for people with diabetes.
- The deal broadens Cardinal Health’s reach in diabetes care by adding AdaptHealth’s direct-to-patient platform for supplies and support services, and enhances its urology business with the addition of Strive Medical.
- Cardinal Health said the deals are expected to add to its adjusted earnings per share in the first 12 months after closing.
- Leerink Partners analyst Michael Cherny said the acquisitions were logical, strategic tuck-ins for Cardinal Health, though he noted the diabetes business would need operational improvements to restore growth and profitability. Cherny said Cardinal’s scale should help it execute that turnaround.
- AdaptHealth separately said Cardinal Health would pay $235 million in cash for the diabetes unit.
- Strive Medical serves more than 20,000 people annually and specializes in urology, wound care, ostomy and adult care supplies.
