AdaptHealth Corp. (NASDAQ: AHCO) announced it has agreed to divest its Diabetes Health business to Cardinal Health for $235 million in cash, subject to customary purchase price adjustments.

The agreement was signed July 19, 2026. The transaction is subject to regulatory review under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.

AdaptHealth CEO Suzanne Foster said the divestiture is "the latest – and most significant – step in a deliberate, multi-year effort to focus AdaptHealth on our core businesses where we have the strongest competitive position and the clearest path to growth."

Following the transaction, AdaptHealth's Diabetes Health segment will be treated as a discontinued operation. The company said it will provide a full financial and guidance update on its second quarter 2026 earnings call, scheduled for August 4, 2026.

AdaptHealth operates three remaining reportable segments: Sleep Health, Respiratory Health, and Wellness at Home. The company serves approximately 4.5 million patients annually across all 50 states through roughly 670 locations in 48 states.

Deutsche Bank Securities Inc. is serving as financial advisor and Reed Smith as legal counsel to AdaptHealth. J.P. Morgan Securities LLC is financial advisor to Cardinal Health, with Skadden, Arps, Slate, Meagher & Flom LLP and DLA Piper serving as its legal advisors.