McKesson and CD&R to Acquire Option Care Health for $5.8 Billion at $32.05 Per Share

McKesson and private equity firm Clayton, Dubilier and Rice have agreed to acquire Option Care Health in a deal valuing the home infusion therapy provider at approximately $5.8 billion, including debt. The acquisition price of $32.05 per share was confirmed in a definitive agreement among all three parties. Under the terms, CD&R will hold a majority interest of about 51% in Option Care Health, while McKesson will hold approximately 49%.

Option Care Health shares surged as much as 33% on the news, having already jumped around 20-22% in premarket trading after the Financial Times first reported that a deal was imminent. The buyout is the latest acquisition of a healthcare services company that had been trading below historic valuation multiples, according to reporting on the deal's strategic rationale.

Analysts at Truist reiterated a Buy rating on Option Care Health amid the sale talks, while Citizens Financial also maintained its rating as acquisition discussions became public. The transaction expands McKesson's presence in the medical infusion services space alongside CD&R's majority ownership stake.