AHCO · AdaptHealth Corp.

AdaptHealth Corp. announced the divestiture of its Diabetes Health business to Cardinal Health for $235 million in cash, subject to customary purchase price adjustments. This transaction represents the most significant step in AdaptHealth's multi-year strategy to focus on its core sleep, respiratory, and home medical equipment businesses. The company believes Cardinal Health's scale and operational capabilities are better suited to realize the full potential of the diabetes assets. The proceeds will be used to strengthen AdaptHealth's balance sheet, accelerate deleveraging, and reinvest in growth opportunities in sleep and respiratory care. The sale includes an asset purchase agreement with standard representations, warranties, and indemnification provisions. Notably, the agreement includes a four-year non-compete clause covering diabetes-related medical devices and services in North America, a two-year non-solicitation of transferred employees, and a seven-year confidentiality period. The transaction is subject to HSR clearance and other customary conditions, including acceptance of employment offers by at least 80% of targeted employees and a key employee. If antitrust clearance is not obtained, Cardinal Health must pay a $9.4 million termination fee. AdaptHealth expects to report the Diabetes Health segment as discontinued operations going forward and will provide a full financial update on its Q2 2026 earnings call.