CD&R and McKesson have entered into a definitive agreement to acquire Option Care Health for $32.05 per share in a transaction representing an enterprise value of approximately $5.8 billion.
CD&R will hold an approximately 51% majority ownership interest in Option Care Health following completion.
McKesson will invest approximately $1.4 billion and hold an approximately 49% minority interest.
Option Care Health will continue operating as a separate company under its existing management team.
The $32.05 per-share purchase price represents an approximately 37% premium to Option Care Health’s closing share price on October 5, 2026, the final full trading day before the transaction was announced.
Option Care Health is the largest independent provider of home and alternate-site infusion services in the U.S.
The company employs more than 8,000 people, including more than 5,000 clinicians, and provides services to patients with acute and chronic conditions across all 50 states.
Its model is built around delivering infusion therapies in patients’ homes and ambulatory facilities rather than requiring all treatment to occur in hospitals or other traditional institutional settings.
CD&R and McKesson see continued innovation across specialty, rare and orphan therapies as increasing demand for alternate infusion services.
The companies believe Option Care Health’s national clinical infrastructure can help broaden access to increasingly complex treatments while moving some care into lower-cost community settings.
For McKesson, the investment aligns with a strategy of expanding access to specialty medicines and supporting care across a wider range of settings.
The healthcare services company expects to bring its specialty pharmaceutical experience and industry relationships to Option Care Health while remaining a minority investor.
The transaction also establishes a framework under which McKesson could eventually acquire CD&R’s interest in Option Care Health, subject to specified conditions and regulatory approvals.
Following closing, McKesson intends to account for its investment using the equity method and record its share of Option Care Health’s net income or loss in Other Income, net.
Option Care Health will continue operating normally while the transaction is pending.
The transaction is expected to close during the first half of 2027.
Completion remains subject to Option Care Health shareholder approval, required regulatory approvals and other customary closing conditions.
After closing, Option Care Health’s common shares will cease trading on Nasdaq and the business will become privately held.
Option Care Health plans to release third-quarter 2026 financial results on November 4.
Because of the acquisition agreement, the company will not hold its previously expected live earnings conference call and is withdrawing its previously disclosed financial guidance.
Centerview Partners is serving as financial adviser to Option Care Health, with Kirkland & Ellis providing legal counsel.
BofA Securities, Barclays, Goldman Sachs, Jefferies and Wells Fargo are serving as financial advisers on the transaction and are providing committed financing to the consortium.
Debevoise & Plimpton is serving as legal adviser to CD&R.
Davis Polk & Wardwell and Reed Smith are advising McKesson.
KEY QUOTES:
“We are pleased to have entered into this agreement, which provides immediate cash value for our stockholders. The Board of Directors completed an extensive assessment, involving thorough discussions with our advisors, and unanimously concluded this transaction maximizes value for our stockholders.”
Harry Kraemer, Chairman of the Board of Option Care Health
“This transaction represents a great outcome for Option Care Health and our stockholders, and I want to thank our Board of Directors for their rigorous process and diligence. For more than 45 years, Option Care Health has helped transform the way infusion therapy is delivered, led by our team members’ unwavering commitment to providing extraordinary care to patients. We will continue to enhance our platform and deepen our partnerships with hospitals and health systems, physicians, payers, and biopharma manufacturers. We are thrilled to have the support of CD&R and McKesson, empowering us to continue investing strategically and accelerate the pace of our advanced technology deployment to improve clinical outcomes and reduce the total cost of care. Both firms understand our business and the healthcare industry, and have proven track records of fostering growth for some of the largest and fastest-growing healthcare service businesses globally.”
John C. Rademacher, Chief Executive Officer of Option Care Health
“Option Care Health has shown what is possible when high-quality infusion therapy is delivered where patients are most comfortable: at home and in their communities. We look forward to supporting Option Care Health’s proven management team, together with McKesson and applying CD&R’s deep experience in healthcare services to help Option Care Health bring specialized therapies to more patients across the country.”
Sarah Kim, Partner at CD&R
“This investment represents an important opportunity that aligns with McKesson’s long-term strategy to expand access and affordability to innovative therapies across the care continuum. As these therapies continue to grow in importance and their delivery becomes increasingly complex, McKesson is focused on investing in areas where our capabilities can help improve access and advance care in lower-cost community settings, at or closer to home. Option Care Health’s clinical model and national infusion footprint across home and ambulatory sites are well aligned with those priorities, and the company is well positioned for continued growth. As a strategic investor, we look forward to bringing McKesson’s experience and expertise in specialty pharmaceuticals to support Option Care Health’s strategy of broadening access to complex therapies and enabling care delivery in lower-cost settings, while creating long-term value for stakeholders.”
Brian Tyler, Chair and Chief Executive Officer of McKesson
