Cardinal Health Announces Agreement to Acquire GI Alliance Holdings and Advanced Diabetes Supply Group

On November 11, 2024, Cardinal Health Inc. (NYSE: CAH) disclosed in an 8-K filing with the Securities and Exchange Commission that it has entered into a definitive Agreement and Plan of Merger with The GI Alliance Holdings, LLC (GIA) and Cure Acquisitionco, LLC. As per the agreement, Cardinal Health will acquire approximately 71% of GIA for approximately $2.8 billion, pending adjustments. The completion of this acquisition is contingent upon the standard closing conditions, including regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The agreement between Cardinal Health and GIA includes customary provisions like representations, warranties, and agreements. It also outlines termination conditions and a provision for Cardinal Health to potentially purchase the remaining equity of GIA starting from the third anniversary of the closing date.

In connection with the Merger Agreement, Cardinal Health secured a commitment letter with Bank of America to provide a senior unsecured bridge term loan facility of up to $2.9 billion, subject to specific conditions. This Bridge Facility is intended to fund the GIA acquisition and associated costs.

Cardinal Health further noted that the GIA acquisition will advance its multi-specialty growth strategy while the acquisition of the Advanced Diabetes Supply Group, a direct-to-patient provider of diabetes medical supplies, aligns with its at-Home Solutions growth strategy. Both acquisitions aim to enhance the company’s value proposition for patients and providers.

In a press release issued on the same day, Cardinal Health emphasized that these strategic acquisitions reflect its commitment to driving sustainable shareholder value creation through focused growth strategies. The company anticipates closing both transactions in early calendar year 2025, subject to customary closing conditions and regulatory approvals.

Cardinal Health intends to host an Investor Day on June 12, 2025, in New York City to provide further insights into its strategic initiatives and growth plans. The company is also focused on preserving its investment grade credit ratings, returning capital to shareholders, and exploring strategic merger and acquisition opportunities.

Investors and stakeholders are advised to review the full details of the Merger Agreement and related transactions in the official filings with the SEC. The company will continue to update the public on progress and developments related to these acquisitions.

For more information, interested parties can access the full 8-K filing and related exhibits on the Securities and Exchange Commission’s website. Additional details and updates on Cardinal Health’s acquisitions can be found on the company’s Investor Relations page.

This news article is based on the disclosures made in Cardinal Health’s 8-K filing and associated press release on November 11, 2024. Investors are encouraged to refer to the official documents for comprehensive information and any future updates.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Cardinal Health’s 8K filing here.

About Cardinal Health

Cardinal Health, Inc operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home.