India's Cardinal Health Closes Massive $3.9 Billion Acquisition Spree
Bengaluru: In two significant deals worth a combined total of about $3.9 billion, US-based pharmaceutical distributor Cardinal Health announced its plans to acquire gastroenterology care platform GI Alliance (GIA) and diabetes medicine provider Advanced Diabetes Supply Group (ADSG).
The deal involves Cardinal Health buying a 71% stake in GIA from Apollo Global Management-backed funds for approximately $2.8 billion in cash. The acquisition is expected to boost the company's presence in the gastroenterology segment, expanding its portfolio of specialty offerings like oncology and rheumatology.
Additionally, Cardinal Health will buy ADSG, which specializes in delivering diabetes supplies directly to patients' homes, for around $1.1 billion from private equity firm Court Square Capital Partners.
The deal is part of Cardinal Health's aggressive expansion into the healthcare market this year. In January, the company completed a series of high-profile acquisitions worth over 2.4 billion dollars including community cancer center operator Integrated Oncology Network and Specialty Networks.
Cardinal Health stated that both deals are expected to boost revenue, segment profit growth, and profit figures by the time they close in early 2025.
The acquisition follows earlier this year's increased adjusted fiscal 2025 profit forecast by the company, driven primarily by strong demand for specialty medicines and branded drugs at its pharmaceuticals unit.
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