Cardinal Health (CAH) M&A Announcement summary

Deal rationale and strategic fit

• Acquisitions of GI Alliance (GIA) and Advanced Diabetes Supply Group (ADSG) accelerate growth in specialty and at-home healthcare, expanding reach in high-growth therapeutic areas and enhancing value for providers and patients.

• GIA offers a multi-specialty platform in the $40B GI market with over 900 physicians across 20 states and 345 locations, while ADSG strengthens direct-to-patient diabetes supply, serving about 500,000 patients annually.

• Both deals align with a focused growth strategy, supporting long-term value creation and sustainable shareholder value.

Financial terms and conditions

• Cardinal Health will acquire a 71% stake in GIA for approximately $2.8B in cash and 100% of ADSG for approximately $1.1B in cash.

• Financing will be about 25% cash on hand and 75% new debt, including a $2.9B bridge loan facility.

• Cardinal Health can exercise a call right to purchase the remaining GIA equity starting on the third anniversary of closing.

• Both deals are expected to add at least $300M in EBITDA and be accretive within the first full year of ownership.

Synergies and expected cost savings

• Integration of ADSG with at-Home Solutions will leverage operational investments, automation, and distribution capacity for high-margin, synergistic growth.

• GIA’s MSO platform and Specialty Networks’ analytics are expected to drive efficiency and expand services across multiple specialties.

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