Cardinal Health (CAH) M&A Announcement summary

Deal rationale and strategic fit

• Acquisitions of GI Alliance (GI MSO leader) and Advanced Diabetes Supply Group (direct-to-patient diabetes supplies) accelerate growth in specialty and at-home healthcare, expanding reach in key therapeutic areas and enhancing value for providers and patients.

• GI Alliance provides a multi-specialty platform, expanding reach in the $40B GI market and building a network of over 900 physicians across 20 states and 345 locations.

• ADSG strengthens at-home solutions, serving about 500,000 diabetes patients annually and enhancing direct-to-patient diabetes care.

• Both deals align with a focused growth strategy in high-growth healthcare markets and support long-term value creation.

Financial terms and conditions

• Acquiring 71% of GI Alliance for approximately $2.8B in cash, with a call right to purchase remaining equity on future anniversaries.

• Acquiring ADSG for approximately $1.1B in cash; ADSG will merge with at-home solutions.

• Transactions financed with ~25% cash on hand and ~75% new debt, including a $2.9B bridge loan facility.

Synergies and expected cost savings

• Both acquisitions expected to deliver accretive revenue, segment profit, and non-GAAP EPS within 12 months post-close.

• ADSG’s $1B revenue fits into the existing distribution network with no added capacity needed, enabling high-margin synergies.

• Integration expected to enhance operational alignment, leverage existing business structures, and drive commercial and operational efficiencies.