Houlihan Lokey Advises Advanced Diabetes Supply® Group

Houlihan Lokey is pleased to announce that Advanced Diabetes Supply® Group (ADSG), a portfolio company of Court Square Capital Partners (Court Square), has entered into a definitive agreement to be acquired by Cardinal Health (NYSE:CAH) for approximately $1.1 billion in cash. The transaction is subject to the satisfaction of customary closing conditions, including the receipt of required regulatory approvals.

Founded in 2002, ADSG is a leading national distributor of specialized diabetes supplies. ADSG offers a comprehensive diabetes-focused portfolio to its nearly 500,000 patients, including the latest innovations in diabetes therapies such as continuous glucose monitors from leading manufacturers. ADSG is made up of the Advanced Diabetes Supply (ADS) and United States Medical Supply (US MED) brands, both of which share a vision to be one of the nation’s premier diabetes equipment suppliers.

ADSG is a portfolio company of Court Square, a middle-market private equity firm with more than 40 years of experience in the industry. Since 1979, Court Square has completed more than 245 platform investments and is focused on helping founders, families, and manager-owners develop their companies into leaders in their respective markets. Court Square invests in companies that have compelling growth potential in the industrial, business services, healthcare, and tech and telecom sectors. As of June 2024, Court Square has $8.9 billion in assets under management and is based in New York.

Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for healthcare facilities. With more than 50 years in business, operations in over 30 countries, and approximately 48,000 employees globally, Cardinal Health is essential to care. Upon deal close, ADSG will join Cardinal Health at-Home Solutions, a business unit that serves more than 5 million patients annually by delivering critical medical supplies directly to their homes.

Houlihan Lokey acted as the lead financial advisor to ADSG and assisted in initiating, structuring, and negotiating the transaction on its behalf. This deal further strengthens and highlights Houlihan Lokey’s continued leadership position in the healthcare distribution sector, having previously sold US MED to ADS in 2021. Houlihan Lokey’s Healthcare Group is among the largest dedicated healthcare investment banking groups in the world. In 2023, the group was ranked by LSEG (formerly Refinitiv) as the No. 1 investment bank for all global healthcare M&A transactions.

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