Updated Version 4 - McKesson and CD&R to privatize infusion therapy provider Option Care in a $5.8 billion deal

Update stock price information, and add analyst commentary in the fifth paragraph

Sneha S K

Reuters, October 6 - Pharmaceutical distributor McKesson (MCK.N) and private equity firm Clayton Dubilier & Rice on Tuesday reached a deal to take infusion therapy service provider Option Care Health (OPCH.O) private, with a total transaction value (including debt) of about $5.8 billion.

The offer price of $32.05 per share represents a premium of 37.1% over Option Care’s latest closing price. Shares of the company rose 32.8% to $31.03.

For the U.S. pharmaceutical distributor, this transaction is its latest move to expand its healthcare services portfolio, and also marks another private equity acquisition of a home health service provider after Enhabit (link).

Option Care Health is the largest independent infusion therapy service provider in the United States, serving over 308,000 patients annually through more than 197 service locations, including at-home and outpatient infusions, specialty pharmacy, and care for complex conditions.

JPMorgan analyst Lisa Gill stated that McKesson's focus on specialty and community healthcare makes this acquisition highly attractive, allowing it to leverage supply chain efficiencies and collaborate with Option Care Health in the area of complex chronic medication management.

As the population ages and more patients choose to receive care outside of high-cost settings like hospitals, demand for home healthcare in the United States is increasing.

Under the terms of the transaction, McKesson will invest approximately $1.4 billion for a 49% minority stake, and will retain the right to acquire the remaining 51% from CD&R at a future date. Option Care Health will continue to operate as an independent company, led by its existing management team.

Leerink Partners analyst Michael Cherny noted in a report on Monday evening that this deal allows McKesson to capitalize on the shift of healthcare delivery from hospitals and medical institutions to alternative sites.

Given that McKesson currently operates Canada’s leading infusion network, Inviva, this acquisition will also expand its U.S. home infusion business.

McKesson’s oncology and multi-specialty business units (including infusion services) reported revenue of $14.2 billion in the latest quarter, marking a 33% year-over-year increase.

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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