McKesson and CD&R Agree $5.8 Billion Buyout of Option Care Health

Healthcare distribution giant McKesson and private equity firm Clayton, Dubilier & Rice (CD&R) have reached an agreement to acquire Option Care Health in an all-cash transaction valued at approximately $5.8 billion. The acquisition represents the latest major private equity-backed consolidation within the United States healthcare services sector, targeting specialized post-acute care and home infusion providers.

Under the terms of the agreement, the buyout consortium will pay an agreed premium per share to Option Care Health stockholders, funding the enterprise valuation of $5.8 billion through a combination of committed equity and debt financing. Option Care Health, which specializes in home and alternate-site infusion therapy services, provides treatments including intravenous nutrition, anti-infectives, and therapies for complex chronic conditions, serving hundreds of thousands of patients nationwide.

The transaction highlights rising investor interest in healthcare companies trading below their historic valuation multiples. Sector analysts noted that public markets have broadly discounted mid-sized healthcare service operators due to heightened labor expenses, reimbursement uncertainties, and complex regulatory environments, rendering them prime candidates for private equity partnerships and balance-sheet restructuring away from quarterly earnings pressures.

The acquisition is anticipated to close in the coming quarters, subject to the approval of Option Care Health shareholders and standard regulatory clearances, including antitrust reviews. Upon completion, McKesson and CD&R intend to leverage McKesson's expansive pharmaceutical distribution network to broaden Option Care's operational reach, accelerating growth across specialized outpatient and ambulatory healthcare channels.