McKesson and CD&R to Take Option Care Health Private in $5.8 Billion Deal

Key points

• The total transaction value is $5.8 billion, with equity valued at nearly $4.8 billion.
• Option Care Health serves over 315,000 patients annually through 184 care centers and at-home services.
• CD&R will own 51% of the company, with McKesson holding the remaining stake and a future buyout right.
• The deal was announced on October 5, 2026, causing Option Care shares to surge approximately 33% in morning trading.
• McKesson’s annual revenue is approximately $403 billion, and its shares have risen 11.5% year-to-date.

Background

This acquisition follows a series of recent buyouts in the healthcare services sector, including Kinderhook Industries’ $1.1 billion takeover of Enhabit. CD&R has a history of partnering with major healthcare firms, such as its 50% stake in Sanofi’s consumer health business Opella and its collaboration with Elevance Health. McKesson recently acquired Precision Medicine Group for approximately $2.2 billion to expand its clinical research services.

How outlets are covering it

The Financial Times emphasizes the strategic alignment for McKesson, noting that Option Care’s infusion centers complement its growing chemotherapy and cancer care clinics. It highlights the broader market trend of healthcare services trading below historic valuation multiples. Yahoo Finance confirms the financial terms, specifically the $32.05 per share price and the $5.8 billion total valuation, but provides less detail on the strategic rationale or the ownership structure compared to the Financial Times. Both sources agree on the core facts of the deal but differ in depth regarding the long-term implications for the healthcare sector.

Why it matters

The acquisition signals continued consolidation in the US healthcare services sector, particularly in the high-growth area of infusion therapy. As drugmakers shift toward complex biologic medicines that require infusion, demand for specialized delivery services is rising. The deal also reflects private equity’s appetite for healthcare assets trading at lower valuations, while McKesson seeks to expand its footprint beyond drug distribution into direct patient care services.

What to watch

The deal is expected to close after regulatory approvals and shareholder votes. CD&R is currently raising $26 billion for its latest flagship fund, which may provide additional capital for future healthcare acquisitions. McKesson may exercise its right to purchase CD&R’s stake in the future, potentially taking full control of Option Care Health.