Cardinal Health Inc Acquisitions

Investing.com– Cardinal Health Inc (NYSE:CAH) announced on Monday its plan to acquire majority stakes in two companies, continuing its buying spree this year to enhance its specialty medicines presence.

Cardinal will purchase a majority stake in GI Alliance, a gastroenterology management services operation, for $2.8 billion in cash, and will acquire the Advanced Diabetes Supply Group for $1.1 billion in cash.

In its statement, the company emphasized that these acquisitions are aimed at growing its specialty business, which is a top priority.

These deals are part of Cardinal's strategy to penetrate the profitable specialty medicine market, known for high profit margins. Earlier in the year, Cardinal acquired community cancer center operator Integrated Oncology Network for $1.12 billion.

The focus on specialty medicines has been rewarding, as the firm reported strong earnings in the September quarter and raised its profit outlook for fiscal 2025.