Cardinal Health Acquires Majority Stake in GIA in a $3.9 Bn Deal
Cardinal Health will acquire a 71% stake in GIA for $2.8 billion in cash from current physician owners and affiliates of Apollo Global Management, strengthening its position in gastroenterology.
Cardinal Health has set its foot to acquire a majority stake in gastroenterology care platform GI Alliance (GIA) and diabetes supplies provider Advanced Diabetes Supply Group (ADSG) in deals totaling approximately $3.9 billion.
The acquisitions come as Cardinal Health expands its reach in specialty healthcare segments, including oncology, rheumatology, and at-home diabetes solutions.
According to Reuters, Cardinal Health will acquire a 71% stake in GIA for $2.8 billion in cash from current physician owners and affiliates of Apollo Global Management, strengthening its position in gastroenterology.
The group also plans to acquire ADSG, a diabetes medicine and supplies provider, for $1.1 billion from Court Square Capital Partners, broadening its at-home healthcare offerings.
These latest moves continue Cardinal Health's billion-dollar acquisition momentum this year.
Earlier, the company acquired Integrated Oncology Network for $1.12 billion and Specialty Networks for $1.2 billion, diversifying its portfolio beyond drug distribution.
Further, Cardinal Health stated the GIA acquisition will complement its growing specialty portfolio, which includes oncology and rheumatology.
Both transactions are projected to contribute to revenue and profit growth within 12 months post-closing.
Additionally, Cardinal Health retains the right to purchase 100% of GIA starting three years after the deal closes, anticipated in early 2025.
Earlier in November, Cardinal Health raised its fiscal 2025 profit forecast, citing strong demand for high-cost specialty medications and branded drugs within its pharmaceuticals division.
