CD&R and McKesson agree to acquire Option Care Health in $5.8 billion deal
CD&R and McKesson will acquire Option Care Health for $32.05 per share, valuing the company at $5.8 billion including debt. The deal, expected to close in early 2027, gives CD&R majority ownership and McKesson a 49% stake. Option Care's Q2 revenue rose 1.9% to $1.442 billion, with net income up 6.7% to $53.9 million.
How this was made
The 30-second read
Why it matters
The transaction creates a vertically integrated platform for drug, equipment, and clinical support services, potentially improving margins but also adding execution risk.
Market read
The announcement is a material M&A event in the healthcare sector, likely moving Option Care shares sharply and prompting sector re‑valuation.
What to watch
Regulatory scrutiny of home infusion reimbursement could affect long‑term profitability.
Background
The deal combines a private equity firm (CD&R) with a major healthcare distributor (McKesson) to acquire a leading home infusion provider.
Ticker impact
Option Care Health announced a $5.8 billion acquisition by CD&R and McKesson at $32.05 per share, a 37% premium to the prior close.
upward pressure as the market prices in the 37% premium
The deal price is above market, providing immediate upside for shareholders.
McKesson will invest about $1.4 billion for a 49% stake in Option Care Health as part of the $5.8 billion transaction.
limited impact, likely flat to slight dip due to cash deployment
The investment is sizable but does not directly affect McKesson's core earnings; market reaction may be muted.
Market effects
Consolidates the home infusion market, potentially prompting further M&A activity in healthcare services.
U.S. healthcare sector may see a modest uplift as investors reassess valuation of similar providers.
Highlights private equity's continued appetite for large-scale healthcare acquisitions worldwide.
Counterpoint
The premium may be excessive if integration costs rise, suggesting a possible overvaluation.
Key entities
- Private Equity FirmCD&R
Lead investor acquiring a controlling stake in Option Care Health.
- Public CompanyOption Care Health
Home infusion services provider being acquired.
- Public CompanyMcKesson
Healthcare distributor taking a 49% stake in the transaction.
