Cardinal Health to acquire Solaris Health for $1.9B in cash, sees accretion

Cardinal Health (CAH) announced that The Specialty Alliance, its multi-specialty management services organization platform, has entered into a definitive agreement to acquire Solaris Health from Lee Equity Partners and Solaris Health physician owners. Cardinal Health will provide approximately $1.9B in cash to The Specialty Alliance to enable the acquisition and will own approximately 75% of The Specialty Alliance after its acquisition of Solaris Health. Solaris Health physicians and several members of management will join GI Alliance physician owners and management as equity holders and operators in The Specialty Alliance. Solaris Health supports more than 750 providers across more than 250 practice locations in 14 states. Cardinal Health expects the transaction to close by the end of calendar year 2025, subject to closing conditions, including the receipt of required physician and regulatory approvals. The transaction is expected to be slightly accretive to Cardinal Health’s non-GAAP earnings per share in the first 12 months following close. Cardinal Health expects to include the expected impact to its fiscal year 2026 guidance after the acquisition is completed. In connection with the announcement of the acquisition, Cardinal Health reaffirmed its disciplined capital allocation framework. The company intends to finance the acquisition with a combination of cash on hand and new debt financing and plans to take a focused approach to paying down debt over the next 18 to 24 months. The company does not expect its deleveraging plans to change its previously outlined share repurchases and continues to expect to be within its targeted leverage range by the end of fiscal 2026.