US drug distributor McKesson and private equity firm Clayton Dubilier & Rice are nearing a joint deal to acquire Option Care Health for over $5 billion including debt. Under the proposed terms, CD&R will take a 51 percent stake and McKesson will hold 49 percent, with McKesson retaining future buyout rights. The transaction highlights growing investment in the home infusion market, driven by high hospital delivery costs and a shift toward complex biologic medicines.
Proposed acquisition of Option Care Health
- ▪McKesson and Clayton Dubilier & Rice are in advanced talks to acquire Option Care Health in a deal valued at more than $5 billion including debt
- ▪A joint acquisition of Option Care Health by McKesson and Clayton Dubilier & Rice could be reached as soon as Tuesday, 6 October 2026, though discussions could still fall apart
Proposed ownership structure
- ▪McKesson will hold the right to purchase Clayton Dubilier & Rice's 51 percent stake in Option Care Health in the future
- ▪Under the terms of a proposed deal, Clayton Dubilier & Rice will own a 51 percent stake in Option Care Health, while McKesson will own a 49 percent stake
Share price performance
- ▪McKesson shares have risen 11.5 percent since the start of 2026, giving the drug distributor a market capitalisation of about $107 billion
- ▪Option Care Health shares have declined 27 percent in 2026, giving the medical infusion services provider an enterprise value of $4.6 billion including $1.2 billion in debt
Clinical care networks
- ▪Option Care Health served more than 315,000 patients in 2025 across 184 care centres and through at-home infusion services for cancer, autoimmune diseases, and serious infections
- ▪McKesson operates an extensive network of chemotherapy and cancer care clinics, which is one of the fastest-growing divisions of the $403 billion-a-year revenue company
McKesson's growth strategy
- ▪McKesson chief financial officer Kenny Cheung stated last month that the company would pursue growth by finding accretive deals for its overall platform and portfolio
- ▪McKesson agreed to a $2.2 billion deal last month to acquire Precision Medicine Group to expand its clinical research and commercialisation services
Debatable claims
- ▪Regulators should block McKesson's acquisition of Option Care Health
- ▪Integrating drug distribution with outpatient care is an effective way to lower healthcare costs
- ▪Private equity investment in healthcare providers does more harm than good
- ▪The high cost of hospital care justifies the shift toward at-home medical infusions
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