Citizens downgrades Option Care Health stock rating on McKesson deal

McKesson Corporation and private equity firm Clayton Dubilier & Rice (CD&R) agreed to acquire Option Care Health, a home infusion company, for $5.8 billion. McKesson will invest $1.4 billion for a 49% stake, with CD&R taking 51%. The deal values Option Care Health at $32.05 per share, a 36% premium over Monday's closing price. Once completed, Option Care Health will become private and delist from Nasdaq.

Lamb Weston (LW) shares rose 11.85% after reporting Q1 sales of $1.67B and raising 2027 EBITDA guidance. Option Care (OPCH) jumped 32.8% on a $5.8B take-private deal. Apogee (APOG) gained 18.7% on strong Q2 earnings and raised FY2027 outlook. Constellation (CEG) surged 14.79% after a Google nuclear deal. RPM (RPM) rose 2.5% on record Q1 results.

McKesson Corp. and private equity firm Clayton, Dubilier & Rice will acquire Option Care Health Inc. for $5.8 billion, or $32.05 per share, a 37% premium. McKesson will own 49%, with CD&R as the controlling shareholder. Option Care, a major provider of home and outpatient infusion care, will retain its management team. The deal aligns with McKesson's strategy to expand specialty care services, potentially increasing its ownership over time.

Citizens analyst Constantine Davides downgraded Option Care Health (OPCH) to Market Perform from Outperform following an acquisition agreement by CD&R and McKesson (MCK) for $32.05 per share in cash.

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.

Jefferies downgraded Option Care Health (OPCH) to Hold from Buy with a new price target of $32.05, following an acquisition agreement at that price per share by CD&R and McKesson (MCK).