CD&R And McKesson To Acquire Option Care Health
CD&R and McKesson (MCK) will acquire Option Care Health (OPCH) for $32.05 per share, valuing the deal at $5.8 billion. CD&R will hold 51% and McKesson 49%. Option Care will become private. OPCH shares rose 20.5% in pre-market trading.
How this was made
The 30-second read
Why it matters
The transaction creates a new joint venture with CD&R holding 51% and McKesson 49%, positioning the combined entity for growth in the expanding home‑care market.
Market read
First‑report of a $5.8 bn M&A deal in the healthcare services sector, triggering a notable pre‑market rally in the target’s stock.
What to watch
Regulatory approval timelines and potential antitrust scrutiny could delay closing.
Background
CD&R, a private‑equity firm, partners with McKesson to acquire Option Care Health, a provider of home infusion services.
Ticker impact
McKesson is a co‑buyer in the $5.8 bn acquisition of Option Care Health, committing $1.4 bn for a 49% stake.
likely modest pressure as investors assess the $1.4 bn investment cost
The deal size is material and disclosed for the first time; market will price the financing impact.
Option Care Health is being acquired and its shares jumped 20.5% pre‑market to $28.16 on the announcement.
upward pressure as the premium is priced in
First‑report of the deal and a 20% price jump indicate strong immediate buying interest.
Market effects
Consolidates the home‑infusion market and may spur further M&A activity in healthcare services.
U.S. healthcare sector gains visibility; no immediate global ripple.
Limited to U.S. healthcare investors; the deal size is notable but not systemic.
Counterpoint
The premium may be excessive; integration risks could erode value for McKesson.
Key entities
- private equityCD&R
Co‑buyer holding 51% of the post‑deal entity.
- public companyMcKesson Corp.
U.S. healthcare distributor acquiring a 49% stake for $1.4 bn.
- public companyOption Care Health
Target of the acquisition; shares rose 20.5% on news.
