AdaptHealth sells Diabetes Health unit to Cardinal Health for $235 million

AdaptHealth Corp. has agreed to sell its Diabetes Health business to Cardinal Health for $235 million in cash, with the transaction signed on July 19 and subject to Hart‑Scott‑Rodino antitrust review. The divestiture is a key step in AdaptHealth’s multi‑year plan to narrow its focus to sleep and respiratory care, reduce debt and improve financial flexibility.

Chief Executive Officer Suzanne Foster said the sale will allow the company to redeploy capital toward its core strengths and strengthen its balance sheet, while Cardinal Health will assume ownership of the diabetes‑related medical‑product business, which aligns with its scale and distribution capabilities.

In parallel, institutional investors have increased their holdings in AdaptHealth. Arrowstreet Capital Limited Partnership raised its stake to about 0.62% (roughly $10 million), and other investors such as Vanguard, Deerfield Management and Principal Financial Group also adjusted positions, reflecting confidence in the company’s restructuring strategy.