Key Highlights
- $2.8 billion investment for 71% stake in GI Alliance, expanding Cardinal’s specialty care in gastroenterology.
- $1.1 billion acquisition of ADSG to strengthen at-Home Solutions in diabetes care.
- Both deals aim to enhance patient care and accelerate specialty growth.
- Capital allocation strategy reaffirmed, financing through cash and new debt.
- Acquisitions expected to close in early 2025 and be accretive to EPS within 12 months.
Source: PR Newswire
Notable Quotes
- “Today is an exciting day at Cardinal Health as we announce two strategic and financially compelling transactions.” — Jason Hollar, CEO at Cardinal Health
- “Cardinal Health and GI Alliance are aligned in our shared vision to build a physician-led, national specialty healthcare platform.” — James Weber, M.D., CEO at GI Alliance
- “We couldn’t be more excited about joining Cardinal Health at-Home Solutions to build on our mission.” — Bill Mixon, CEO at ADSG
SoHC's Take
Cardinal Health’s $3.9 billion investment in GI Alliance and ADSG represents a targeted expansion in high-growth healthcare segments, particularly specialty and home-based care. By integrating GI Alliance’s GI services into its Specialty Solutions and merging ADSG into its at-Home Solutions, Cardinal Health is strategically aligning with the industry’s shift toward specialized, patient-centered care models. These acquisitions not only expand Cardinal’s operational scope but are expected to drive revenue growth and improve EPS within a year, reinforcing the company’s commitment to delivering value to both patients and shareholders.
