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CD&R and McKesson agree to acquire Option Care Health

CD&R and McKesson agree to acquire Option Care Health

Money Moves

Private equity firm and drug distributor pay $32.05 per share, valuing the company at about $5.8 billion

Today: CD&R and McKesson sign definitive agreement to acquire Option Care Health

Overview

Updated 1 hour ago

Option Care Health, a leading provider of home and alternate-site infusion services, is being taken private. Private equity firm Clayton Dubilier & Rice (CD&R) and drug distributor McKesson have signed a definitive agreement to acquire the company for $32.05 per share, valuing it at about $5.8 billion.

The deal reflects the growing demand for specialty drug infusion outside hospitals, driven by expensive cancer and autoimmune therapies. It also gives McKesson a strategic stake in a fast-growing care channel, with a path to full ownership later.

Why it matters

This deal could shift where patients receive IV specialty drugs, moving more care from hospitals to homes.

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Key Indicators

$5.8B
Total enterprise value
Includes debt and equity for the acquisition.
37%
Premium to Oct 5 closing price
Premium to Option Care Health's closing price on October 5, 2026.
51%
CD&R majority stake
CD&R will hold about 51% of Option Care Health after closing.
$1.4B
McKesson investment
McKesson will invest about $1.4 billion for a 49% minority stake.

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Organizations Involved

Timeline

1 event Latest: Today
  1. CD&R and McKesson sign definitive agreement to acquire Option Care Health

    Today M&A

    The two firms agree to pay $32.05 per share, valuing the company at about $5.8 billion. CD&R will hold 51%, McKesson 49%.

Scenarios

1

Deal closes in first half of 2027

Likely Resolves by Q2 2027

Discussed by: CD&R and McKesson press release; Bloomberg Law

Stockholders approve the merger and regulators clear it without major conditions. The deal closes as planned, Option Care Health is delisted from Nasdaq, and McKesson begins accounting for its stake using the equity method.

2

Regulators block or delay the deal

Possible Resolves by Q2 2027

Discussed by: Reuters; antitrust analysts

The Federal Trade Commission or Department of Justice raises concerns about McKesson's distribution power combined with home infusion services. They could file a lawsuit to block the merger or require divestitures, pushing the close beyond 2027.

3

Stockholders reject the merger

Unlikely Resolves by Q1 2027

Discussed by: Proxy advisory firms; shareholder activists

A majority of Option Care Health's stockholders vote against the deal, possibly due to the 37% premium being seen as too low. The merger fails and the company remains public.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2019

Option Care and BioScrip merger (2019)

Option Care and BioScrip, two home infusion providers, merged to create a larger company with a national footprint. The merger was aimed at achieving scale in a fragmented market.

Then

The combined company became one of the largest independent home infusion providers.

Now

It set the stage for further consolidation, culminating in this acquisition.

Why this matters now

Shows the consolidation trend in home infusion that this deal continues.

2018

CVS Health and Aetna merger (2018)

CVS Health acquired Aetna for $69 billion, combining a pharmacy chain with a health insurer. The deal aimed to create a vertically integrated healthcare company that could manage costs and improve care coordination.

Then

The merger closed in 2018 after regulatory approval.

Now

It became a model for vertical integration in healthcare, with companies seeking to control more of the patient journey.

Why this matters now

McKesson's minority stake in Option Care Health is a similar vertical move, giving a distributor control over a care delivery channel.

Sources

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