Cardinal Health spends $360M on two home-care acquisitions

Cardinal Health is expanding its home-care medical supply business with two acquisitions totaling about $360 million, targeting diabetes and urology patients as care shifts from hospitals to homes.

Cardinal Health Inc. agreed to buy two home-care businesses for about $360 million, expanding its reach in diabetes and urology supplies as the healthcare distributor targets first-year earnings accretion.

"These acquisitions strengthen our ability to serve patients where they increasingly want to be treated — at home," said Jason Hollar, chief executive officer of Cardinal Health, in a statement.

The deals include AdaptHealth Corp.'s diabetes business for $235 million and Strive Medical, a urology and continence care supplier. The combined purchase price of roughly $360 million will be funded from existing cash, the company said. The transactions are expected to close in the current fiscal quarter, subject to customary regulatory approvals.

The acquisitions position Cardinal Health in two of the fastest-growing segments of home-based care. The diabetes supplies market is projected to exceed $50 billion globally by 2030, according to Grand View Research, as continuous glucose monitors and insulin pumps shift care from clinics to homes. The urology supplies segment has also seen steady demand growth, driven by an aging population in the U.S. where adults 65 and older now number more than 56 million, per Census Bureau data.

Expanding the Home-Care Footprint

The Dublin, Ohio-based company has been building its home-care division as a growth engine. Cardinal Health's home-care segment, part of its medical segment, generated about $4 billion in revenue in fiscal 2025, according to company filings. The acquisitions add roughly 200,000 patients to Cardinal Health's home-care customer base, the company said.

The AdaptHealth diabetes unit brings a portfolio of continuous glucose monitors, insulin pumps and related supplies distributed to more than 100,000 patients. Strive Medical adds urology catheters, ostomy supplies and continence care products serving about 80,000 patients across 40 states.

Competitive Landscape and Industry Trends

The home-care medical supply market has become a battleground for large distributors. McKesson Corp. and Owens & Minor Inc. have also expanded their home-care offerings through acquisitions in recent years. Cardinal Health's move follows a broader industry push to capture patients outside hospital settings, where margins on medical supplies tend to be higher and relationships with patients more durable.

The company said the acquisitions should add to adjusted earnings per share in the first full year after closing, though it did not provide a specific dollar figure. Cardinal Health reports fiscal fourth-quarter results in August, where executives are expected to provide more detail on the integration timeline.

This article is for informational purposes only and does not constitute investment advice.