AdaptHealth Diabetes Health business divestiture marks a strategic move as AdaptHealth Corp. enters into a definitive agreement with Cardinal Health. The transaction supports AdaptHealth’s long-term portfolio strategy.
AdaptHealth announced the sale of its Diabetes Health business to Cardinal Health. Moreover, the company aims to strengthen its focus on core healthcare areas. These include sleep, respiratory, and supporting home medical equipment businesses.
The agreement, which was signed on July 19, 2026, states that Cardinal Health would be purchasing the Diabetes Health business for $235 million in cash. However, the deal is still subject to normal purchase price adjustments and regulatory approval in accordance with the Hart-Cottrell-Rodino Act.
Suzanne Foster, CEO of AdaptHealth, said, “The divestiture of our Diabetes Health business is the latest and most significant step in a deliberate, multi-year effort to focus AdaptHealth on our core businesses where we have the strongest competitive position and the clearest path to growth. Over the past two years, we have systematically reshaped our portfolio around our core sleep, respiratory, and supporting HME business lines, where we cross the threshold of the home to deliver clinical value to patients.”
AdaptHealth Strengthens Focus on Core Healthcare Operations
Through the divestiture process, the company gains better financial flexibility. Also, the company will use some of its capital to invest in its core operations. In addition to that, it anticipates that it will have lower debt and a strong balance sheet. AdaptHealth is an American company that offers healthcare at home services to its patients.
In the process, AdaptHealth will be able to stick to its long-term plan. It focuses on segments in which it offers direct clinical value to patients at home. Further, AdaptHealth believes that the transaction will help it achieve better revenue growth going forward. AdaptHealth also expects better adjusted EBITDA margins post the transaction.
Ms. Foster continued, “We are confident that in Cardinal Health, Diabetes Health is going to an owner that has the scale and operational capabilities required to realize the asset’s full potential. For AdaptHealth, this transaction allows us to redeploy capital toward our core strengths, further strengthen our balance sheet, and accelerate our pursuit of the compelling growth opportunities ahead of us in sleep and respiratory care.”
Further details about the finances of AdaptHealth will be provided during the company’s second quarter earnings call for 2026 on August 4, 2026. This call will involve updated guidance along with the way that Diabetes Health will be considered as a discontinued operation. The financial advisor of AdaptHealth is Deutsche Bank Securities Inc., while the legal advisor for this company is Reed Smith. In the case of Cardinal Health, it is advised by J.P. Morgan Securities LLC.
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News Source: Businesswire.com
