Cardinal Health to buy AdaptHealth diabetes unit, Strive Medical for $360 million
CAH•Analyst view
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.
What the deals include
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.
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.
Cardinal Health to expand home care business with two acquisitions
July 20 (Reuters) - 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.
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.
