Cardinal Health expands home care business with two tuck-in acquisitions
Rhea-AI Summary
Cardinal Health (NYSE: CAH) announced definitive agreements to acquire AdaptHealth's Diabetes Health business and all of Strive Medical for a combined purchase price of approximately $360 million in cash, subject to working capital adjustments. The deals support Cardinal Health's at-Home Solutions growth strategy in diabetes management and urology.
According to Cardinal Health, AdaptHealth's Diabetes Health business serves more than 225,000 people annually via a centralized mail-order, direct-to-patient model, while Strive Medical serves more than 20,000 people annually in urology, wound care, ostomy and incontinence. Building on the earlier Advanced Diabetes Supply acquisition, Cardinal Health reports it has migrated all ADS volume to its at-Home Solutions network, onboarded nearly 500,000 new customers, and launched the ContinuCare Pathway digital referral program. The new transactions are subject to customary closing conditions, including regulatory approvals, and are expected to be accretive to non-GAAP EPS within 12 months after closing.
Positive
- Two tuck-in acquisitions totaling approximately $360 million in cash
- Targets collectively serve over 245,000 patients annually across diabetes and urology supplies
- Prior ADS acquisition added nearly 500,000 new at-home customers
- All ADS volume migrated to Cardinal Health's at-Home Solutions distribution network
- New deals expected to be accretive to non-GAAP EPS in first 12 months post-close
Negative
- Cardinal Health to deploy approximately $360 million of cash for the acquisitions
- Closings depend on customary conditions and required regulatory approvals, introducing execution risk
News Market Reaction – AHCO
In the Jul 21 session, AHCO gained 2.09%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 14 | Earnings date notice | Neutral | +3.9% | Second-quarter earnings release date and conference call scheduled for August 4 |
| May 05 | Investor conferences | Neutral | -2.8% | Management announced participation in two upcoming healthcare investor conferences |
| May 05 | Quarterly earnings | Negative | -9.9% | Adjusted EBITDA declined and free cash flow remained negative despite raised revenue guidance |
| Apr 14 | Earnings date notice | Neutral | -0.9% | First-quarter earnings release date and analyst teleconference were announced |
| Apr 13 | Debt refinancing | Positive | +1.2% | Refinancing extended maturities and reduced the stated cost of debt |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
AHCO's recent news reactions were mixed, including a sharp decline after first-quarter results and positive reactions to financing and earnings-date announcements.
Key Terms
working capital adjustments financial
non-GAAP financial
accretive financial
continuous glucose monitors medical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Cardinal Health will acquire the Diabetes Health business of AdaptHealth Corp. (NASDAQ: AHCO), and, in its entirety, Strive Medical, a multi-specialty supply provider with a focus on urology. Combined, the transactions total approximately
"These strategic transactions build on the synergies created by our recent investments in home care," said Jason Hollar, Chief Executive Officer, Cardinal Health. "As a natural extension of our at-Home Solutions growth strategy, they expand our enterprise-wide depth and breadth across important therapeutic categories like diabetes management and urology, further strengthening our leadership in a highly dynamic industry."
Both agreements enhance the framework established by Cardinal Health's most recent acquisition of Advanced Diabetes Supply (ADS). The company recently highlighted the progress of its at-Home Solutions business one year after its acquisition of ADS, including integration achievements that were realized ahead of plan. Since closing the original ADS transaction, the team successfully migrated all ADS volume onto the at-Home Solutions efficient and technology-enabled distribution network, onboarded nearly 500,000 new customers, and launched ContinuCare Pathway, a unique pharmacy-to-supplier digital referral pathway program.
"Our significant operational achievements in FY26 position us to continue building the country's leading platform to deliver simplified, innovative and high-quality care in the home, both organically and through acquisition," said Rob Schlissberg, President of Cardinal Health at-Home Solutions.
Layering these transactions on top of previous investments in the at-Home Solutions business also expands the company's ability to deliver high-quality service at scale.
AdaptHealth's Diabetes Health business, which serves more than 225,000 people annually, operates primarily as a centralized, mail-order, direct-to-patient model that delivers supplies like continuous glucose monitors to support the ongoing management of diabetes.
Strive Medical serves more than 20,000 people annually as one of the nation's leading independent home medical supply providers specializing in urology, wound care, ostomy, and incontinence supplies, expanding Cardinal Health's enterprise-wide capabilities in this critical therapeutic area.
These transactions are subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals, and are expected to be accretive to non-GAAP earnings per share in the first 12 months following close.
Advisors
J.P. Morgan Securities LLC served as financial advisor to Cardinal Health on both acquisitions. Skadden, Arps, Slate, Meagher & Flom LLP and DLA Piper served as legal advisors to Cardinal Health on the acquisition of AdaptHealth's diabetes business. BakerHostetler LLP and DLA Piper LLP served as legal advisors to Cardinal Health on the acquisition of Strive Medical.
About Cardinal Health
Cardinal Health is a distributor of pharmaceuticals and specialty products; a global manufacturer and distributor of medical and laboratory products; a supplier of home-health and direct-to-patient products and services; an operator of nuclear pharmacies and manufacturing facilities; and a provider of performance and data solutions. Our company's customer-centric focus drives continuous improvement and leads to innovative solutions that improve people's lives every day. Learn more about Cardinal Health at cardinalhealth.com and in our Newsroom.
About AdaptHealth
AdaptHealth Corp. is a national leader in providing patient-centered, healthcare-at-home solutions, including home medical equipment (HME), medical supplies, and related services. Through its network of full-service medical equipment providers, AdaptHealth delivers tailored products and services designed to help patients manage chronic conditions and live independently in their homes. It serves beneficiaries of Medicare, Medicaid, and commercial insurance plans and reaches millions of patients annually.
About Strive Medical LLC
Strive Medical, an NMS Capital portfolio company, is a leading national durable medical equipment (DME) provider specializing in urology, incontinence, and wound care supplies delivered directly to patients. As an Accreditation Commission for Health Care (ACHC) accredited organization, Strive Medical manages the full insurance billing process – including Medicare, Medicaid, and over 5,000 private insurance plans – making access to essential supplies seamless for patients and referring providers alike. For more information, visit strivemedical.com
Contacts
Media: Cari Wildasinn, Cari.Wildasinn@cardinalhealth.com and (614) 757-8287
Investors: David Frost, David.Frost@cardinalhealth.com and (614) 553-4460
Cautions Concerning Forward-Looking Statements
This news release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook, and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include risks associated with the planned acquisitions addressed in this release, including the risk that we may not receive required regulatory approval or otherwise fail to complete one or both of the acquisitions and the risk that we may fail to realize the anticipated strategic and financial benefits of the acquisitions. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. This news release reflects management's views as of July 20, 2026. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. Forward-looking statements are aspirational and not guarantees or promises that goals, targets or projections will be met, and no assurance can be given that any expectation, initiative or plan in this news release can or will be achieved or completed.
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SOURCE Cardinal Health