Cardinal Health buys AdaptHealth's diabetes unit and Strive Medical in $360M home-care push

What's the deal? Cardinal HealthDealroom has a profile for this one. Try Dealroom → has agreed to buy AdaptHealth's diabetes health business and medical supply provider Strive MedicalDealroom has a profile for this one. Try Dealroom → in separate deals worth about $360 million in total. The Dublin, Ohio-based company said the acquisitions would expand its at-Home Solutions business.

What's the endgame? AdaptHealth's Diabetes Health business provides devices such as continuous glucose monitors and insulin pumps, plus related services. The deal adds AdaptHealth's direct-to-patient platform for supplies and support services, broadening Cardinal Health's reach in diabetes care.

Strive Medical serves more than 20,000 people annually, specialising in urology, wound care, ostomy, and adult care supplies. Its acquisition enhances Cardinal Health's urology business.

Why now? The purchases build on Cardinal Health's earlier acquisition of Advanced Diabetes Supply. AdaptHealth separately said Cardinal Health would pay $235 million in cash for the diabetes unit.

Cardinal Health said the deals are expected to add to its adjusted earnings per share in the first 12 months after closing.

What could go wrong? Leerink Partners analyst Michael Cherny called the acquisitions logical, strategic tuck-ins, but noted the diabetes business would need operational improvements to restore growth and profitability. He said Cardinal's scale should help it execute that turnaround.

The signal: The twin deals underline Cardinal Health's push to consolidate direct-to-patient supply channels for chronic conditions, betting scale can turn fragmented home care lines into profitable growth.

Read more: Yahoo Finance

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