McKesson, CD&R near $5B-plus deal to buy Option Care, FT says

• Option Care provides infusion services allowing patients to receive intravenous medications at home or outpatient settings rather than in hospitals
• McKesson's oncology & multispecialty segment revenue rose 33% in the latest quarter, driven by specialty distribution growth and acquisitions
• An analyst noted the 'strategic rationale' makes sense as it would extend McKesson's reach into home and alternate-site care settings

Summary

Key Transaction Details:

Drug distributor McKesson and private equity firm Clayton Dubilier & Rice (CD&R) are nearing acquisition of Option Care Health, an infusion services provider, in a deal valued at over $5 billion including debt, according to Financial Times sources. The deal could be announced as soon as Tuesday, though negotiations remain subject to potential collapse.

Companies and Sector:

The transaction involves McKesson (drug distributor), CD&R (private equity), and Option Care Health (infusion services). Option Care specializes in providing intravenous medications to patients in home or outpatient settings rather than hospitals.

Strategic Rationale:

This acquisition aligns with McKesson's ongoing strategy to expand its healthcare services footprint beyond physician offices into home and alternate-site care settings. Leerink Partners analyst Michael Cherny noted the deal's strategic logic for broadening McKesson's reach. The company has been actively reshaping its portfolio by divesting non-core assets and investing in higher-growth areas including oncology and specialty care.

Recent Performance:

McKesson's oncology and multispecialty segment revenue increased 33% in the latest reported quarter, driven by specialty distribution growth and previous acquisitions. In August, McKesson acquired Precision Medicine Group as part of its multi-year effort to strengthen higher-growth business lines.

Market Implications:

The deal represents continued consolidation in the healthcare services sector, particularly in the growing home healthcare and alternate-site care market. McKesson's aggressive M&A strategy signals confidence in the shift away from traditional hospital-based care delivery models.

All three companies declined to comment or did not respond to requests for comment.