Updated version 3 - McKesson and CD&R will privatize infusion therapy provider Option Care in a $5.8 billion deal

Added stock price movement in paragraph 2

Sneha S K

Reuters, October 6 - Drug distributor McKesson (MCK.N) and private equity firm Clayton Dubilier & Rice reached a deal on Tuesday to take infusion therapy services provider Option Care Health (OPCH.O) private, in a transaction valued at around $5.8 billion including debt.

The acquisition offer of $32.05 per share represents a 37.1% premium to Option Care’s latest closing price. The stock rose 33% in pre-market trading to $31.11.

This transaction marks the latest move by the U.S. drug distributor to expand its healthcare services footprint, and is a second buyout of a home healthcare services provider by a private equity fund after Enhabit (link).

Option Care Health is the largest independent provider of infusion therapy services in the U.S., serving more than 308,000 patients annually through over 197 service sites, including home and outpatient infusions, specialty pharmacy, and complex condition care.

As the population ages and more patients seek care outside high-cost settings such as hospitals, demand for home healthcare in the U.S. continues to grow.

Upon completion of the deal, CD&R will hold a majority stake, while McKesson will hold a minority stake. Option Care Health will remain an independent company, led by its own management team.

Under the deal terms, McKesson will invest about $1.4 billion for a 49% stake, and will retain the right to acquire the remaining 51% stake from CD&R at a future date.

Leerink Partners analyst Michael Cherny noted in a report late Monday that the deal enables McKesson to align with the shift of care delivery away from hospitals and medical institutions to alternative sites.

In addition, since McKesson currently operates Canada’s leading infusion and injection network Inviva, this transaction will further expand its presence in the U.S. home infusion services sector.

McKesson's oncology and multi-specialty business segment (including infusion services) reported $14.2 billion in revenue in the latest quarter, up 33% year-on-year, driven by specialty pharmaceutical distribution and contributions from acquisitions.

The deal is expected to close in the first half of 2027, at which point Option Care Health will become a private company.

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