McKesson and CD&R Agree to Take Option Care Health Private in a $5.8 Billion Home Infusion Deal
The drug distributor will own 49 per cent and the buyout firm 51 per cent of the biggest independent home infusion provider, with a route for McKesson to take the rest later. Shares jumped a third.
Wednesday, October 7, 2026/2 min read
A rumour became a signed deal in under a day. On Tuesday, McKesson, the drug distributor, and the private equity firm Clayton Dubilier & Rice, known as CD&R, announced that they will buy Option Care Health, the largest independent provider of home and alternate-site infusion services in the United States, in a transaction valued at about $5.8 billion including debt.
The price is $32.05 a share in cash, about 37 per cent above Option Care's closing price on Monday, according to the joint press release filed with the US Securities and Exchange Commission. Shares rose about 33 per cent to roughly $31, Reuters reported, a little under the offer, which is how a market prices a deal it expects to close but cannot yet bank.
How is the McKesson and CD&R deal structured?
This is not a conventional takeover. CD&R will own about 51 per cent of Option Care at closing, and McKesson will invest about $1.4 billion for the other 49 per cent, recording its share of the profits or losses under the equity method. The agreement also sets up a path for McKesson to buy CD&R's stake later, subject to conditions and regulatory approvals. Option Care will stay a separate company run by its own management team.
The Financial Times had reported the outline on Monday, saying a deal could come as soon as Tuesday, according to Stocktwits. Option Care shares jumped about 22 per cent in after-hours trading that evening, and the stock was down 27 per cent for the year before the news.
Why does McKesson want a home infusion business?
Because treatment is moving out of hospitals. Option Care delivers complex therapies to patients at home and in ambulatory settings in all 50 states, with more than 8,000 team members, over 5,000 of them clinicians. McKesson says it sees long-term growth in specialty, rare and orphan therapies and in rising demand for infusion outside hospitals. Brian Tyler, its chair and chief executive, said the company wants to invest where care can move to "lower-cost community settings".
Reuters notes that McKesson's oncology and multispecialty segment, which includes infusion services, reported $14.2 billion in revenue in its latest quarter, up 33 per cent from a year earlier, and that the company already runs an infusion network in Canada called Inviva. J.P. Morgan's Lisa Gill said the deal fits McKesson's focus on specialty care and the community setting, and Leerink Partners' Michael Cherny said it aligns the company with the shift of care away from hospitals and provider offices. It is also another private equity purchase of a home health provider, following Enhabit.
What happens next for Option Care shareholders?
The deal needs a vote by Option Care's stockholders and regulatory clearances, and is expected to close in the first half of 2027. After that the stock will be delisted from Nasdaq and the company will be private. Until then, TIKR notes, the shares sit about three per cent below the offer, a thin reward for waiting up to nine months.
Option Care has withdrawn its 2026 guidance and will report third-quarter results on 4 November without a conference call. The next things to watch are the proxy filing that sets the shareholder vote and any early word from regulators.
Published in The Outspoken Digest
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