Cardinal Health to Buy AdaptHealth's Diabetes Unit for $235 Million
The all-cash asset deal lets AdaptHealth shed its diabetes device business to sharpen its focus on sleep and respiratory care in the home.
Cardinal Health agreed to acquire the Diabetes Health business of AdaptHealth Corp. (AHCO) for $235 million in cash in an asset-purchase transaction that removes continuous glucose monitors and insulin pumps from AdaptHealth's four-segment portfolio.
The deal is structured as an asset purchase rather than a stock sale, and its close is subject to regulatory review under the Hart-Scott-Rodino Antitrust Improvements Act along with other customary closing conditions. No exchange ratio or premium calculation applies given the cash, asset-level structure.
AdaptHealth framed the sale as the culmination of a multiyear portfolio reshaping rather than a one-off transaction. "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," the company said, citing its sleep, respiratory, and supporting home medical equipment lines as the businesses that "cross the threshold of the home to deliver clinical value to patients". The divestiture increases capital flexibility for reinvestment and debt reduction and is expected to improve its revenue growth profile and adjusted EBITDA margins.
The unit being sold has been one of four reportable segments at AdaptHealth alongside Sleep Health, Respiratory Health, and Wellness at Home, providing CGMs, insulin pumps, and related services to patients managing diabetes across AdaptHealth's national referral network of roughly 660 locations in 47 states. AdaptHealth CEO Suzanne Foster has previously described the company's broader strategy as centered on AI and automation, clinical relevance, organic growth, and balance-sheet strength, a framework into which the Diabetes Health sale fits as a further narrowing of scope.
The transaction follows a similar move in the home-health sector: Resmed's July 2026 agreement to sell its MatrixCare software business to Frazier Healthcare Partners, which Resmed said would sharpen its focus on "high-growth, scalable opportunities in sleep health, breathing health and connected home-based healthcare". Both deals point to a cycle in which home-care platform companies are trimming adjacent segments to concentrate capital on sleep and respiratory therapy, their highest-margin core lines.
For AdaptHealth, the sale arrives after a stretch of raised guidance and segment-wide organic growth, including a first-quarter 2026 update in which the company lifted its full-year revenue outlook to a range of $3.45 billion to $3.52 billion while holding adjusted EBITDA guidance of $680 million to $730 million. Completion of the Cardinal Health deal would leave AdaptHealth operating across three segments, with the proceeds directed toward debt reduction and reinvestment in its remaining home medical equipment lines, pending the regulatory clearance process now underway.