Cardinal Health Expands Home Care With $360M Deal
Synopsis
The healthcare distributor is strengthening its at-home solutions business through the acquisitions of AdaptHealth's diabetes unit and Strive Medical.
Cardinal Health $360 million home care deal will expand the healthcare distributor's presence in home-based medical services through the acquisition of AdaptHealth's Diabetes Health business and medical supplies provider Strive Medical.
The two cash sales, totaling about US$360 million, are subject to customary closing conditions and bolster Cardinal Health's At-Home Solutions business.
The deal entails Strive Medical accounting for the remainder of the transaction value, with the purchase of AdaptHealth's Diabetes Health business valued at US$235 million. The businesses sell products and services directly to those who have chronic illnesses and are not in hospital or clinic settings, and this continued need for in-home care is reflected in the businesses.
Home Care Business Continues to Grow
AdaptHealth's Diabetes Health business treats over 225,000 patients each year, offering continuous glucose monitors, insulin pumps and other diabetes products directly to patients. Strive Medical is a company that provides urology, wound care, ostomy and incontinence supplies to over 20,000 patients annually in the United States.
The acquisitions are part of Cardinal Health's recent Diabetes Care platform expansion with the acquisition of Advanced Diabetes Supply earlier this year. The latest deals should help the company's adjusted earnings in the year ahead, the company said.
Industry Demand Remains Strong
The new International Diabetes Federation (IDF) Diabetes Atlas estimates that as of 2024, there were 589 million adults with diabetes globally, and for the first time in history, global expenditure for diabetes is greater than $1 trillion.
China, India and the United States have the highest prevalence of diabetes, and almost 75% of the world's diabetics reside in low and middle-income countries.
The deal for investors is a further consolidation in the home healthcare market as distributors diversify from traditional retail and wholesale pharmaceutical to direct patient care.
The trend is also applicable to Australian healthcare investors, where demand for community-based healthcare services remains consistent as the population ages, with ASX-listed home-care and aged care providers, and medical technology companies as an example, benefiting.
Cardinal Health's fiscal 2025 full-year revenue is US$226.8 billion, highlighting the breadth of its distribution business in the health care sector as it pursues specific acquisitions in its home healthcare segment to grow its higher-margin business.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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