On Nov. 11, Cardinal Health announced via a press release that it has entered into definitive agreements to acquire two companies.
Cardinal Health will acquire a majority stake in GI Alliance (GIA), a gastroenterology (GI) management services organization (MSO), from a combination of GIA physician owners and funds managed by affiliates of Apollo. Cardinal Health will purchase its majority stake for approximately $2.8 billion in cash, which will represent 71% ownership. GIA will operate as a platform within Cardinal Health's Pharmaceutical and Specialty Solutions segment.
Cardinal Health will also acquire the Advanced Diabetes Supply Group (ADSG), a diabetic medical supplies provider, for approximately $1.1 billion in cash. ADSG will merge with Cardinal Health's at-Home Solutions business.
The press release stated, “GI Alliance's leading national MSO platform includes over 900 physicians across 345 practice locations in 20 states, with extensive reach into the local communities they serve. GIA supports a complete continuum of gastroenterology care across its member sites, with significant additional depth in anesthesiology, pathology, infusion, radiology and clinical research. GIA-affiliated doctors treat patients in 135 ambulatory surgical centers and 165 hospital networks, supported by 95 infusion centers.”
Further, “Advanced Diabetes Supply Group delivers comprehensive diabetes solutions that are tailored to support individual patients at-home, consistent with Cardinal Health's at-Home Solutions strategy to support this rapidly growing patient population. ADSG serves approximately 500,000 patients annually by providing the latest innovations in diabetes therapies from leading manufacturers.”
Janette Wider | Editor-in-Chief
Janette Wider is Editor-in-Chief for Healthcare Purchasing News.
