On July 21, 2026, Cardinal Health announced two acquisitions aimed at bolstering its home care business, specifically targeting the diabetes and urology markets.
The company is acquiring AdaptHealth's diabetes health unit, which serves over 225,000 patients annually, and Strive Medical, which caters to more than 20,000 patients with urology and wound care products, for a total of $360 million in cash.
These acquisitions are part of Cardinal Health's broader strategy to invest in higher-margin, faster-growing sectors, complementing its legacy distribution operations. Analysts from Leerink noted that these deals are 'logical strategic tuck-ins' that align with Cardinal's long-term growth objectives.
The company's 'other' segment, which includes at-home solutions, has demonstrated a significantly higher operating margin of approximately 10.5%, compared to much lower margins in its pharmaceutical and medical distribution segments.
This strategic focus on home care and diabetes solutions is expected to enhance Cardinal Health's growth profile and profitability, reinforcing the investment thesis for stakeholders. The recent acquisitions follow larger deals made in late 2024, indicating a consistent approach to expanding its business portfolio in a recession-resistant market