McKesson, one of the largest drug distributors in the United States, and private equity firm Clayton Dubilier & Rice (CD&R) have agreed to acquire home-infusion provider Option Care Health in a deal valued at about $5.8 billion. The announcement sent Option Care shares up roughly 33% on Tuesday, as investors welcomed the premium offer.
What the deal looks like
Under the terms, Option Care shareholders will receive $32.05 per share in cash, a premium of about 37% over Monday's closing price. After the transaction closes, Option Care will be delisted from the Nasdaq but will continue to operate under its current management team.
The ownership structure is split: CD&R will hold about 51% of the company, while McKesson will pay approximately $1.4 billion for a 49% stake. The partners have also set up a framework that would allow McKesson to eventually buy out CD&R's stake, giving McKesson a clear path to full ownership down the road.
Deutsche Bank, which advised on the deal, framed CD&R's involvement as a way to limit McKesson's upfront cash outlay while still keeping a route to complete control. This staged approach is common in private equity transactions, where a strategic buyer partners with a financial sponsor to share the risk and cost of an acquisition.
Why McKesson wants Option Care
For McKesson, the deal is a move to deepen its presence in what the company calls "specialty care"—complex therapies that often require ongoing support for patients. Home infusion, where treatments like intravenous antibiotics, nutrition, or other medications are delivered at home rather than in a hospital, is a growing segment of healthcare. It can be more convenient for patients and often more cost-effective than inpatient care.
Option Care is one of the largest providers of home infusion services in the U.S., so the acquisition gives McKesson a significant foothold in this area. By combining Option Care's delivery network with McKesson's distribution muscle, the companies aim to capture more of the specialty care market, which is expanding as more treatments shift to outpatient and home settings.
The deal is expected to close in the first half of 2027, pending shareholder approval and other customary conditions. That timeline gives both companies time to integrate operations and for regulators to review the transaction.
What it means for investors
For Option Care shareholders, the immediate takeaway is the cash premium. The $32.05 per share offer is well above where the stock traded before the announcement, and the deal is expected to close, so investors who hold the stock now will likely receive that price if they approve the transaction.
For McKesson investors, the deal is more nuanced. The $1.4 billion upfront payment buys a 49% stake, which gives McKesson meaningful exposure to Option Care's earnings without taking on the full cost or risk of ownership. That can be attractive because it keeps McKesson's leverage lower today, preserving balance-sheet flexibility.
But the framework for McKesson to eventually buy CD&R's stake means a larger cash need could be coming later. That timing risk is something markets tend to focus on. Investors will watch how McKesson manages its balance sheet between now, the closing in 2027, and any future move to take full control. If McKesson's core business generates strong cash flow, funding a later buyout could be manageable. If not, the company might need to take on debt or issue equity, which could dilute existing shareholders.
For everyday investors, this deal is a reminder that acquisitions can take many forms. A partial stake with an option to buy the rest later is a way for a company to enter a new market without betting the farm upfront. It also shows how private equity firms can play a role in healthcare deals, often bringing capital and operational expertise while strategic buyers like McKesson provide industry knowledge and distribution networks.
The broader healthcare sector has seen a wave of consolidation in recent years, as companies look to control more of the patient care continuum. Home infusion is a particularly attractive niche because it sits at the intersection of drug distribution and direct patient care. As more therapies are developed that can be administered at home, the market is likely to keep growing.
For now, the deal is a positive sign for Option Care shareholders, a strategic step for McKesson, and a test of how well the two companies can work together before McKesson potentially takes full control. Investors will be watching for any regulatory hurdles and for how McKesson funds its future buyout obligation.
