McKesson Shares Rise 5% in 5 Days Since $5.8 Billion Deal to Acquire Option Care Health

Key numbers

Deal value	$5.8B
Share of market cap	5.4%
Share of annual revenue	1.4%

Key highlights

• All-cash consideration of $32.05 per share for Option Care Health stockholders
• Total enterprise value of $5.8 billion including the assumption of existing debt
• McKesson to act as a strategic minority investor alongside majority owner CD&R
• Transaction expected to close in the first half of calendar year 2027
• Option Care Health to remain an independent company under its current management team

What Is the Deal?

McKesson Corporation and private equity firm Clayton, Dubilier & Rice (CD&R) have entered into a definitive agreement to acquire Option Care Health, Inc. (Nasdaq: OPCH). The transaction values the independent provider of home and alternate site infusion services at an enterprise value of approximately $5.8 billion. Under the terms of the agreement, Option Care Health stockholders will receive $32.05 per share in cash, representing a complete exit for public shareholders. Following the closing, which is subject to customary regulatory approvals, the company will operate as a standalone entity with its own management team and strategic board of directors.

Deal Structure & Terms

The acquisition is structured as an all-cash transaction funded by a combination of equity and new debt financing. Clayton, Dubilier & Rice will assume the majority ownership position, while McKesson will maintain a minority ownership stake as a strategic partner. The agreement was unanimously approved by the Option Care Health Board of Directors following an extensive strategic assessment. The parties expect to finalize the acquisition in the first half of calendar year 2027, provided all closing conditions and shareholder approvals are met. Option Care Health will delist from the Nasdaq stock market upon the successful completion of the merger.

Strategic Rationale

This investment aligns with McKesson's long-term strategy to expand its footprint in specialty care and community-based health settings. By partnering with Option Care Health, McKesson gains increased exposure to the growing infusion therapy market, which is shifting toward lower-cost home and ambulatory sites. The move complements McKesson's existing specialty pharmaceutical distribution capabilities and its recent $2.25 billion acquisition of Precision Medicine Group. The partnership is designed to improve patient access to complex orphan and rare-disease therapies while leveraging CD&R’s expertise in scaling healthcare service platforms to enhance clinical outcomes and reduce total care costs.

Business Overview

• Option Care Health provides high-quality infusion therapy services in patient homes and 175+ ambulatory suites
• McKesson Corporation operates as a diversified healthcare leader with over $403 billion in annual revenue
• CD&R is a global private investment firm with deep experience in the healthcare and distribution sectors
• The target company serves a diverse patient base requiring chronic and acute infusion therapies
• McKesson distributes one-third of all pharmaceuticals in North America to varied healthcare providers

Financial Context

The acquisition occurs as McKesson optimizes its portfolio through a series of multi-billion dollar transactions, including the planned separation of its Medical-Surgical Solutions business. McKesson shares are currently trading at a P/E ratio of 24.5x, with a market capitalization exceeding $106 billion. The company recently reaffirmed its fiscal year 2027 adjusted diluted EPS guidance of $44.20 to $45.00. This $5.8 billion enterprise value for Option Care Health reflects the significant premium placed on specialized home-care assets within the current medical distribution landscape, where companies are increasingly seeking to diversify revenue streams away from traditional wholesale distribution.

Up 5.1% since our story on 6 Oct: $915.45 when we broke it → $961.88 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.

Show the prices

14 Sep	$910.95
15 Sep	$899.56
16 Sep	$887.29
17 Sep	$879.57
18 Sep	$874.65
21 Sep	$886.47
22 Sep	$891.23
23 Sep	$880.50
24 Sep	$869.36
25 Sep	$866.64
28 Sep	$856.29
29 Sep	$864.82
30 Sep	$853.81
1 Oct	$898.82
2 Oct	$902.28
5 Oct	$915.45
6 Oct	$921.67
7 Oct	$910.33
8 Oct	$930.25
9 Oct	$938.84
12 Oct	$955.76
13 Oct	$961.88

Management commentary

“This investment represents an important opportunity that aligns with McKesson’s long-term strategy to expand access and affordability to innovative therapies across the care continuum.”

“We are thrilled to have the support of CD&R and McKesson, empowering us to continue investing strategically and accelerate the pace of our advanced technology deployment to improve clinical outcomes and reduce the total cost of care.”

MCKESSON CORP · financial snapshot

Share price	$915.45
Market cap	$106.7B
Revenue (annual)	$403.4B
P/E (TTM)	24.5×
1-month price change	-1.01%
Sector	HealthcareMedical Distribution

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.