CONSHOHOCKEN, PA — AdaptHealth Corp. (NASDAQ: AHCO) has agreed to sell its Diabetes Health business to Cardinal Health for $235 million in cash, advancing the home medical equipment provider’s strategy to streamline operations and concentrate on its core sleep and respiratory care businesses.
The transaction, signed July 19, is subject to review under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.
The divestiture marks the company’s largest portfolio move in a multiyear effort to narrow its focus on businesses tied to home-based clinical care. AdaptHealth expects the sale to increase financial flexibility by reducing debt, supporting investment in its core operations and improving its long-term revenue growth profile and adjusted EBITDA margins.
Cardinal Health will assume ownership of the Diabetes Health business, which supplies diabetes-related medical products directly to patients. AdaptHealth indicated the business is better aligned with Cardinal Health’s scale and distribution capabilities.
Chief Executive Officer Suzanne Foster described the sale as the culmination of a broader restructuring strategy.
“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,” Foster said.
She added that the transaction will allow the company to “redeploy capital toward our core strengths, further strengthen our balance sheet,” while accelerating growth initiatives in sleep and respiratory care.
AdaptHealth plans to provide additional details on the transaction’s financial impact, including treatment of the Diabetes Health business as a discontinued operation, during its second-quarter 2026 earnings call scheduled for Aug. 4.
Deutsche Bank Securities Inc. is serving as financial adviser to AdaptHealth, with Reed Smith acting as legal counsel.
Cardinal Health is being advised by J.P. Morgan Securities LLC, with legal counsel provided by Skadden, Arps, Slate, Meagher & Flom LLP and DLA Piper.
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