Pharmaceuticals and healthcare supplies distributor Cardinal Health agreed to acquire GI Alliance (GIA) and Advanced Diabetes Supply Group (ADSG).
Cardinal Health will acquire a majority stake in Southlake, TX-based GIA for approximately $2.8 billion and acquire Carlsbad, CA-based ADSG for $1.1 billion in cash.
“Over the past two years, we have improved operating performance and financial flexibility by executing on our focused growth strategy,” Cardinal Health CEO Jason Hollar said in a Nov. 11 news release. “These transactions enhance Cardinal Health’s ability to deliver a greater value proposition for providers and patients, while representing the next step in our ongoing focus to drive sustainable shareholder value creation.”
Capital Health expects both acquisitions to close in early 2025.
GI Alliance
Cardinal Health will acquire a majority stake in GIA, a gastroenterology (GI) management services organization (MSO), from a combination of GIA’s physician owners and funds managed by Apollo affiliates.
Following the acquisition, Cardinal Health will hold a 71% ownership stake.
GIA’s network includes 135 ambulatory surgical centers, 165 hospital partnerships and 95 infusion centers, with a multi-specialty platform that Cardinal Health said is poised for continued growth and expansion into new therapeutic areas.
“Growing our Specialty business is our top priority,” Hollar said. “By partnering the GIA MSO platform and leadership in gastroenterology with our own national presence and specialty experience, GI Alliance and Cardinal Health together create a meaningful platform that will deliver great results for patients and providers. We are excited to welcome James Weber, M.D., and his team to the Cardinal Health family.”
The Advance Diabetes Supply Group
ADSG is a direct-to-patient provider of diabetes medical supplies, supporting individuals with at-home care. The company serves around 500,000 patients annually by delivering diabetes therapies from various manufacturers.
ADSG will merge with Cardinal Health’s At-Home Solutions business.
“Like at-Home Solutions, ADSG has a proven track record for leading this industry with innovation, knowledge and unparalleled commitment to patients,” Hollar added. “We’re confident that the highly synergistic combination will enhance our ability to take advantage of positive industry trends and drive further growth, deliver on our promise of exceptional service and solutions to customers, and create shareholder value.”
The company reported its 3Q24 financials on Nov. 1 and announced the opening of a new distribution center in Massachusetts three days earlier.
Cardinal Health was No. 3 on MDM’s Top Distributor’s List for Pharmaceuticals & Healthcare.
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