Option Care Health Jumps 33 Percent to $31 After McKesson and CD&R Agree to Take It Private for $5.8 Billion
Option Care Health (OPCH) shares rose 33% to $31.02 after McKesson and Clayton Dubilier & Rice agreed to take it private for $5.8 billion, including debt. The offer is $32.05 per share, a 37.1% premium over Monday's close. CD&R will hold a majority stake, while McKesson will invest $1.4 billion for a 49% stake, with an option to buy the rest later. The deal is expected to close in the first half of 2027, subject to approvals. Option Care is a major provider of home infusion therapy.
How this was made
The 30-second read
Why it matters
The deal adds a new vertical for McKesson and provides a cash exit for Option Care shareholders at a premium, likely driving short‑term upside for OPCH and modest strategic interest for MCK.
Market read
A $5.8 bn take‑private deal with a 33% share price jump creates immediate trading opportunities and signals broader consolidation trends in healthcare services.
What to watch
Potential integration challenges between a distributor and a service provider may affect long‑term value creation.
Background
Option Care Health is the largest U.S. provider of home and alternate‑site infusion therapy; McKesson distributes specialty drugs and seeks to expand into services.
Ticker impact
Option Care Health shares jumped 33% after the announcement of a $5.8 bn take‑private deal with McKesson and CD&R at $32.05 per share.
likely upward pressure as market prices in the deal premium
Deal announced at a 37% premium, immediate 33% price jump, and no competing bids suggest near‑term upside.
McKesson is investing $1.4 bn for a 49% stake in Option Care Health as part of the $5.8 bn transaction.
modest positive bias as investors assess strategic expansion
Investment is sizable but spread over years; market reaction likely muted compared with Option Care’s share surge.
Market effects
Healthcare services sector may see increased M&A interest as distributors seek vertical integration.
U.S. healthcare and specialty drug distribution markets could tighten as integration proceeds.
Large private‑equity deal highlights continued capital flow into U.S. health‑care assets.
Counterpoint
Regulatory scrutiny or shareholder dissent could delay or derail the transaction, causing a pull‑back in Option Care’s price.
Key entities
- CompanyOption Care Health
U.S. home infusion therapy provider being taken private.
- CompanyMcKesson Corp.
Pharmaceutical distributor investing in Option Care.
- Private‑Equity FirmClayton Dubilier & Rice
Lead private‑equity sponsor acquiring majority stake.
