CD&R and McKesson Corporation Sign Agreement to Acquire Option C
McKesson Corporation (MCK) and CD&R will acquire Option Care Health (OPCH) for $32.05 per share, valuing the deal at $5.8 billion. CD&R will hold a 51% majority stake, while McKesson will invest $1.4 billion for a 49% minority stake. The transaction is expected to close in the first half of 2027, subject to regulatory approvals and shareholder approval. Option Care Health's stock will no longer be publicly listed after the deal.
How this was made
The 30-second read
Why it matters
The transaction creates a new minority‑majority ownership structure, with Option Care to operate independently under the new owners.
Market read
A large‑scale M&A in the healthcare services sector with immediate price impact for the target and strategic implications for the acquirer.
What to watch
Regulatory approval risk and integration challenges could delay value realization.
Background
The article details a definitive agreement where private equity firm CD&R and McKesson will acquire Option Care Health, a leading home infusion provider.
Ticker impact
McKesson announced a $1.4 billion minority investment in Option Care Health as part of a $5.8 billion acquisition.
likely modest pressure as investors price the $1.4 billion outflow and future upside from specialty care exposure.
The deal size is material but McKesson remains a minority holder; impact is limited to capital allocation and strategic positioning.
Option Care Health will be acquired for $32.05 per share, a 37% premium, and will be taken private.
upward pressure as the market prices in the 37% premium and the imminent cessation of public trading.
The announced premium and definitive agreement constitute a clear catalyst for a short‑term price rally.
Market effects
Accelerates consolidation in home infusion and specialty therapy services, potentially prompting peers to explore similar partnerships.
U.S. healthcare services sector may see modest re‑rating as investors assess strategic benefits for McKesson.
Limited to U.S. healthcare market; no immediate global macro effect.
Counterpoint
Some investors may view the premium as excessive and question McKesson's valuation of the target.
Key entities
- Private equity firmCD&R
Lead private equity sponsor acquiring majority stake.
- Public companyMcKesson Corporation
U.S. healthcare services distributor investing $1.4 billion for a 49% stake.
- Public companyOption Care Health, Inc.
Home and alternate site infusion services provider being taken private.
