Cardinal Health expands home care business with two tuck-in acquisitions

Cardinal Health (NYSE: CAH) has announced its intention to enhance its at-Home Solutions growth strategy through the acquisition of AdaptHealth Corp.'s Diabetes Health business and Strive Medical, with a total deal value of approximately $360 million in cash. The definitive agreements were disclosed on July 20, 2026, and are expected to be accretive to Cardinal Health's non-GAAP earnings per share within the first 12 months post-transaction. These acquisitions reflect Cardinal Health's ongoing commitment to expanding its capabilities in the home healthcare sector.

AdaptHealth's Diabetes Health business serves over 225,000 patients annually, primarily through a centralized, mail-order, direct-to-patient model. This division specializes in delivering essential supplies, including continuous glucose monitors, which are critical for managing diabetes. The acquisition of this business aligns with Cardinal Health’s strategy to strengthen its presence in the diabetes management market, a sector that is experiencing significant growth due to rising diabetes prevalence and increasing demand for home healthcare solutions.

Strive Medical, which serves more than 20,000 patients each year, is recognized as a leading independent provider of home medical supplies focusing on urology, wound care, ostomy, and incontinence supplies. By integrating Strive Medical into its operations, Cardinal Health aims to enhance its service offerings in critical therapeutic areas, thereby expanding its reach and operational efficiency in the home healthcare market. The acquisition of both AdaptHealth's Diabetes Health business and Strive Medical builds upon Cardinal Health's previous investment in Advanced Diabetes Supply, further solidifying its position in the rapidly evolving home care landscape.

The strategic rationale behind these acquisitions is underscored by Cardinal Health's recent operational achievements, including the successful integration of Advanced Diabetes Supply into its at-Home Solutions platform. The company has demonstrated its ability to onboard a substantial number of new customers and streamline operations through technology-enabled distribution networks. This operational success positions Cardinal Health to leverage synergies from the new acquisitions, ultimately enhancing its ability to deliver high-quality care at scale.

Looking ahead, the broader implications of these transactions highlight the ongoing consolidation within the healthcare sector, particularly in home healthcare services. As demand for at-home medical solutions continues to rise, companies like Cardinal Health are strategically positioning themselves to capture market share and improve patient outcomes. The successful integration of these acquisitions could serve as a model for future growth in the sector, reflecting a shift towards more patient-centered care delivery models in a post-pandemic landscape.