Cardinal Health has announced definitive agreements to acquire majority stakes in two healthcare companies, GI Alliance (GIA) and the Advanced Diabetes Supply Group (ADSG).

Cardinal Health will invest approximately $2.8 billion to secure a 71% stake in GI Alliance, a gastroenterology management services organization that supports over 900 physicians across 345 locations in 20 states. GIA will be integrated into Cardinal Health's Pharmaceutical and Specialty Solutions segment, enhancing the company’s specialty care capabilities across multiple therapeutic areas, including anesthesiology and radiology.

Cardinal Health will acquire ADSG, a provider of direct-to-patient diabetes supplies, for approximately $1.1 billion. The business will merge with Cardinal Health’s at-Home Solutions division, aligning with the company’s goal to support the growing population of patients managing diabetes at home.
Capital allocation plans to support the acquisitions include cash on hand and new debt financing, including a $2.9 billion bridge loan facility from Bank of America.

Both acquisitions are expected to be accretive to Cardinal Health’s revenue and earnings growth in the first year post-closing. Additionally, the company reaffirmed its commitment to maintaining its credit ratings and share repurchase plans, while managing debt paydown over the next 18 to 24 months.

The deals are expected to close in early 2025, subject to regulatory approvals. Cardinal Health plans to provide more insights into its growth strategy at its upcoming Investor Day in New York City on June 12, 2025.

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