Recently, Cardinal Health announced a major financial move, announcing the successful public offering of $2.9 billion in senior notes. The relevant details have been disclosed in the 8-K filing submitted to the U.S. Securities and Exchange Commission. On November 11, Cardinal announced that it would acquire GI Alliance and Diabetes Supply Group for $3.9 billion (approximately RMB 28.2 billion) to expand its business layout in the professional medical and home healthcare fields. Cardinal said that the funds raised from the note issuance will be used in part to provide financial support for its planned acquisition of a majority stake in GI Alliance Holdings, LLC and Advanced Diabetes Supply Group, covering related fees and expenses. The remaining funds will be used for general corporate purposes until they can be used for acquisitions.

It is reported that the notes issued by Cardinal this time cover different maturities and interest rates, including $500 million 4.7% notes due in 2026, $750 million 5% notes due in 2029, $1 billion 5.35% notes due in 2034, and $650 million 5.75% notes due in 2054. These notes are governed by an indenture agreement signed with Bank of New York Mellon Trust Company (as trustee). If the acquisition of The GI Alliance Holdings is not completed within five business days after November 11, 2025 or any agreed extension, Cardinal must redeem the notes at 101% of the total principal amount of the notes plus accrued interest. In addition, after the successful issuance of the notes, the company has reduced its commitments under the agreement previously signed with Bank of America, and the original 364-day priority unsecured bridge term loan financing has terminated the excess commitments due to the successful issuance of the notes.

The $2.9 billion note was issued by BofA Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, and the funds raised are often used for general corporate purposes, such as repaying existing debts or supporting daily operations. Some analysts believe that Cardinal's move to issue $2.9 billion in senior notes is in line with its strategic growth plan. The company's current market value is $29.54 billion, highlighting its important position in the healthcare sector and being a major player in the healthcare provider and service industry, which is consistent with its plan to expand through acquisitions. At the same time, Cardinal has a solid financial position, with revenue of $224.45 billion in the past twelve months. Its huge revenue base enables it to assume additional debt for acquisitions, and its cash flow is sufficient to cover interest payments. It is worth mentioning that Cardinal Health has increased its dividend for 36 consecutive years, reflecting its firm commitment to shareholder returns and is expected to enhance investors' confidence in the company's financial stability and long-term growth prospects.

It should be noted that this financial action comes at a time when Cardinal continues to expand its healthcare services and product offerings. In fact, the company has made many important progress recently. On November 11, Cardinal announced that it had reached a final agreement to acquire two companies to further expand its business layout in professional medical and home healthcare. Cardinal said it would acquire 71% of the shares of GI Alliance, a gastroenterology practice management group, for approximately $2.8 billion. GI Alliance provides administrative and management services to 345 gastroenterology clinics in 20 states, and the equity will be purchased from physician owners and private equity firm Apollo Global Management. Three years after the transaction is completed, Cardinal Health has the option to acquire the remaining shares of the group. The company's executives said that they plan to expand GI Alliance's existing back-end management service platform, such as revenue cycle management and physician recruitment, to other treatment areas to improve overall operational efficiency and service scope. At the same time, Cardinal Health will also acquire Advanced Diabetes Supply Group (ADSG) for approximately $1.1 billion. ADSG is a supplier specializing in diabetes care products, serving approximately 500,000 patients each year. This acquisition will not only enrich Cardinal Health's product line, but will also significantly expand the business scale of its home medical department.

With the aging of the global population and the rising incidence of chronic diseases such as diabetes, the home medical market has great growth potential. This acquisition is expected to enable Cardinal Health to occupy a favorable position in this fast-growing field and obtain more government medical insurance payment resources. Both acquisitions are expected to be completed early next year. In recent years, Cardinal Health has been actively deploying in the field of professional medical care. In September this year, the company announced the acquisition of cancer care operator Integrated Oncology Network for US$1.12 billion, and completed the acquisition of practice support company Specialty Networks in the spring. Through this series of strategic acquisitions, Cardinal Health continues to strengthen its comprehensive capabilities in professional medical practice management and build a more complete medical service ecosystem. The proceeds from the recently announced issuance of US$2.9 billion in notes will be used in part to provide financial support for its planned acquisition of a majority stake in GI Alliance Holdings, LLC and Advanced Diabetes Supply Group, covering related fees and expenses. The remaining funds will be used for general corporate purposes until they can be used for acquisitions.

According to public information, Cardinal Health has a very broad business scope. In addition to tumor care, the company has layouts in cardiovascular and surgical consumables. But who would have thought that this company was originally a food giant. It is understood that Cardinal was founded in 1971, when it was still called Cardinal Foods, a food distribution company. At that time, a wave of food movement swept the United States. With the overall optimism of the industry, Cardinal Food continued to acquire and expand its scale, seize market share, and successfully listed in 1983. In the 1980s, the pharmaceutical industry grew rapidly. In the eyes of the insightful founder Walter, medicine and food have commonalities: both are rigid necessities, and the two have similarities in sales methods and warehousing. Walter decided to start switching to the medical industry with a better situation and expand the pharmaceutical sales business on the basis of Cardinal Food. In 1988, Walter completely withdrew from the food business and fully invested in the pharmaceutical sales industry. Taking advantage of the industry's acquisitions and mergers, Walter led the company to develop rapidly. In 1994, the group was renamed Cardinal Health. In 1995, it acquired Medicine Shoppe, the largest retail pharmacy in the United States. This pharmacy mainly sells prescription drugs and is also famous for providing unique services such as health checks and nursing centers. This is also the first acquisition of Cardinal Health in the non-pharmaceutical wholesale category, which has opened up the upstream and downstream pharmaceutical sales industry chain. Since then, Cardinal Health has maintained a high growth trend, with an average annual growth rate of 42% in turnover, and has become a big player in the medical and health services industry. Since then, it has continuously added services such as health checks and nursing centers, transforming Cardinal Health from a drug seller to a medical services group. After 2015, Cardinal Health, which has tasted the sweetness, continued to transform and began to increase its medical products business. In 2015, it spent $1.944 billion to acquire Cordis, the cardiovascular business of Johnson & Johnson Medical. In April 2017, it acquired Medtronic's medical supplies sales business for $6 billion, further laying the foundation for its transformation to medical products and services. According to statistics in 2019, after Cardinal Health announced the acquisition of mscripts, a digital communication platform associated with pharmacy dispensing systems, it has completed 39 acquisitions since its establishment.

Currently, Cardinal Health provides medical products to more than 75% of hospitals in the United States, making it the largest drug sales network in the United States. In addition, it also produces medical and surgical products, including gloves, surgical gowns and fluid management products, providing customized solutions for hospitals, healthcare systems, pharmacies, outpatient surgery centers, clinical laboratories and global doctors' offices around the world.

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