McKesson and CD&R agree to acquire Option Care Health for $5.8 billion

Clayton, Dubilier & Rice, LLC, McKesson Corporation (MCK), and Option Care Health, Inc. (OPCH) announced on Monday that they entered into a definitive agreement under which CD&R and McKesson will acquire Option Care Health for $32.05 per share in cash, reflecting a total enterprise value of approximately $5.8 billion, according to a joint regulatory filing.

The purchase price represents a premium of approximately 37% to Option Care Health’s closing share price on October 5, 2026, which was the last full trading day prior to the transaction announcement.

Under the terms of the agreement, CD&R will hold a majority ownership interest of approximately 51%, and McKesson will invest approximately $1.4 billion for a minority interest of approximately 49%. The transaction also establishes a framework for McKesson’s future acquisition of CD&R’s interest in Option Care Health, subject to specified conditions and regulatory approvals. Following the close, McKesson intends to account for its minority interest using the equity method of accounting.

Option Care Health will remain a separate company led by its current management team and will continue to operate as usual, serving patients across all 50 states as an independent provider of home and alternate site infusion services.

“We are pleased to have entered into this agreement, which provides immediate cash value for our stockholders,” Harry Kraemer, Chairman of the Board of Option Care Health, said in a statement.

John C. Rademacher, Chief Executive Officer of Option Care Health, said the transaction empowers the company to continue investing strategically and accelerate the deployment of advanced technology.

“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,” Rademacher said in the joint news release.

Brian Tyler, Chair and Chief Executive Officer of McKesson, said the investment aligns with the company’s long-term strategy to expand access and affordability to innovative therapies across the care continuum.

“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,” Tyler said.

Sarah Kim, a Partner at CD&R, said the firm looks forward to supporting Option Care Health’s management team and applying CD&R’s experience in healthcare services.

The transaction is expected to close in the first half of calendar year 2027, subject to customary closing conditions, including approval by Option Care Health’s stockholders and the receipt of required regulatory approvals. Upon completion, Option Care Health’s common stock will no longer be publicly listed on the Nasdaq Stock Exchange, and the company will become privately held.

In connection with the announcement, Option Care Health stated it expects to release its financial results for the third quarter ended September 30, 2026, on November 4, 2026, will not host a live conference call for the release, and is withdrawing its previously disclosed financial guidance.

Centerview Partners LLC is serving as financial advisor and Kirkland & Ellis LLP is serving as legal advisor to Option Care Health. BofA Securities, Barclays, Goldman Sachs, Jefferies, and Wells Fargo are acting as financial advisors and providing committed financing to the consortium. Debevoise & Plimpton LLP is serving as legal advisor to CD&R. Davis Polk & Wardwell LLP and Reed Smith LLP are serving as McKesson’s legal advisors.