Key Takeaways
- • McKesson and Clayton Dubilier & Rice are in advanced discussions to acquire Option Care Health, the largest independent US infusion services provider, in a transaction valued at more than $5 billion including debt, with an agreement potentially imminent.
- • Option Care would operate as a joint venture with CD&R holding 51% and McKesson holding 49%, with McKesson retaining an option to acquire CD&R's stake at a later date, combining CD&R's healthcare expertise with McKesson's pharmaceutical distribution scale.
- • Option Care's stock price had declined approximately 27% year-to-date before deal reports emerged, valuing the company at roughly $4.7 billion enterprise value (including ~$1.2 billion debt); shares surged 22% in after-hours trading following the transaction announcement.
- • Option Care serves more than 315,000 patients through 184 care centers and in-home delivery, treating cancer, autoimmune diseases, and serious infections, positioning the combined entity in a high-growth healthcare services segment.
Summary
McKesson Corporation and Clayton Dubilier & Rice have reached advanced stages in negotiations to acquire Option Care Health, the nation's largest independent infusion services provider, in a transaction valued at more than $5 billion inclusive of debt. According to the Financial Times, an agreement could be finalized imminently, though discussions remain subject to potential changes or termination.
The proposed transaction reflects growing private equity appetite for healthcare services businesses experiencing valuation pressures. Option Care's equity price had fallen approximately 27% through October 2026 before deal reports surfaced, resulting in an enterprise value of roughly $4.7 billion including approximately $1.2 billion in existing debt. Following news of the pending acquisition, Option Care shares rallied 22% in after-hours trading, indicating market support for the transaction.
Under the proposed structure, CD&R would acquire a 51% controlling stake through a joint venture with McKesson, which would retain 49% ownership. McKesson has negotiated an option to acquire CD&R's remaining stake at a future date. This arrangement pairs CD&R's demonstrated healthcare sector expertise and carve-out acquisition capabilities with McKesson's established position as one of the world's largest pharmaceutical distributors. The transaction would extend McKesson's recent strategic shift toward higher-growth healthcare services beyond its core pharmaceutical distribution business.
Option Care operates the largest independent US infusion services platform, serving more than 315,000 patients through a network combining 184 dedicated care centers with in-home delivery capabilities. The company specializes in treating oncology, autoimmune disease, and serious infection patients, representing a stable, recurring-revenue healthcare services business aligned with demographic trends and private equity return objectives.
The proposed transaction reflects growing private equity appetite for healthcare services businesses experiencing valuation pressures. Option Care's equity price had fallen approximately 27% through October 2026 before deal reports surfaced, resulting in an enterprise value of roughly $4.7 billion including approximately $1.2 billion in existing debt. Following news of the pending acquisition, Option Care shares rallied 22% in after-hours trading, indicating market support for the transaction.
Under the proposed structure, CD&R would acquire a 51% controlling stake through a joint venture with McKesson, which would retain 49% ownership. McKesson has negotiated an option to acquire CD&R's remaining stake at a future date. This arrangement pairs CD&R's demonstrated healthcare sector expertise and carve-out acquisition capabilities with McKesson's established position as one of the world's largest pharmaceutical distributors. The transaction would extend McKesson's recent strategic shift toward higher-growth healthcare services beyond its core pharmaceutical distribution business.
Option Care operates the largest independent US infusion services platform, serving more than 315,000 patients through a network combining 184 dedicated care centers with in-home delivery capabilities. The company specializes in treating oncology, autoimmune disease, and serious infection patients, representing a stable, recurring-revenue healthcare services business aligned with demographic trends and private equity return objectives.
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