Key Takeaways
- • Clayton Dubilier & Rice and McKesson Corporation agreed to take Option Care Health private at $32.05 per share in cash, valuing the company at approximately $5.8 billion enterprise value, representing a 37% premium to the last closing price before announcement.
- • The deal structure pairs CD&R as majority owner (51% stake) with McKesson as a strategic minority investor ($1.4 billion for 49%), creating a framework for McKesson to potentially acquire CD&R's interest later—a model designed to provide sponsors with a credible exit path for limited partners.
- • Option Care Health, the largest independent U.S. provider of home and alternate-site infusion services with more than 8,000 employees across all 50 states, will remain separately managed under current leadership post-close.
- • Transaction expected to close in the first half of 2027, subject to stockholder and regulatory approval; committed financing arranged through BofA Securities, Barclays, Goldman Sachs, Jefferies, and Wells Fargo.
- • The partnership demonstrates continued private equity appetite for out-of-hospital care delivery models where specialty and complex therapies represent growing healthcare spending, while addressing sponsor pressure to demonstrate LP distributions in a challenging exit environment.
Summary
Clayton Dubilier & Rice and McKesson Corporation announced a definitive agreement on October 7, 2026, to take Option Care Health private at $32.05 per share in an all-cash transaction valued at approximately $5.8 billion. The deal represents a departure from conventional private equity buyout structures, instead establishing a sponsor-strategic partnership in which CD&R assumes majority control with a 51% stake while McKesson commits $1.4 billion for a 49% minority position to be accounted for under the equity method. Notably, the agreement includes a framework permitting McKesson to potentially acquire CD&R's interest at a future date, subject to specified conditions and regulatory approval.
Option Care Health operates as the largest independent U.S. provider of home and alternate-site infusion services, employing more than 8,000 people—including over 5,000 clinicians—with operations spanning all 50 states. The acquisition price of $32.05 per share reflects a 37% premium over the company's final closing price before announcement, with the Wall Street Journal reporting a 33% premarket share surge following the news. The company has withdrawn previously issued financial guidance and will release third-quarter results on November 4 without a conference call.
The transaction structure exemplifies an emerging template within private equity for deploying large capital commitments in healthcare services alongside strategic partners that provide both incremental funding and a defined future acquisition pathway. By partnering with McKesson, CD&R reduces the equity it must commit at premium valuations while embedding a natural exit opportunity—an increasingly important consideration as sponsors face pressure to demonstrate limited partners with credible distribution routes in a constrained exit environment. The deal additionally signals sustained private equity interest in lower-cost, out-of-hospital care delivery settings, where specialty and complex therapies command growing healthcare expenditure.
Closing is anticipated in the first half of 2027, contingent upon stockholder approval and regulatory clearance. Committed financing has been secured from BofA Securities, Barclays, Goldman Sachs, Jefferies, and Wells Fargo, with Centerview Partners and Kirkland & Ellis advising Option Care Health, Debevoise & Plimpton serving as CD&R counsel, and Davis Polk & Wardwell and Reed Smith advising McKesson.
Option Care Health operates as the largest independent U.S. provider of home and alternate-site infusion services, employing more than 8,000 people—including over 5,000 clinicians—with operations spanning all 50 states. The acquisition price of $32.05 per share reflects a 37% premium over the company's final closing price before announcement, with the Wall Street Journal reporting a 33% premarket share surge following the news. The company has withdrawn previously issued financial guidance and will release third-quarter results on November 4 without a conference call.
The transaction structure exemplifies an emerging template within private equity for deploying large capital commitments in healthcare services alongside strategic partners that provide both incremental funding and a defined future acquisition pathway. By partnering with McKesson, CD&R reduces the equity it must commit at premium valuations while embedding a natural exit opportunity—an increasingly important consideration as sponsors face pressure to demonstrate limited partners with credible distribution routes in a constrained exit environment. The deal additionally signals sustained private equity interest in lower-cost, out-of-hospital care delivery settings, where specialty and complex therapies command growing healthcare expenditure.
Closing is anticipated in the first half of 2027, contingent upon stockholder approval and regulatory clearance. Committed financing has been secured from BofA Securities, Barclays, Goldman Sachs, Jefferies, and Wells Fargo, with Centerview Partners and Kirkland & Ellis advising Option Care Health, Debevoise & Plimpton serving as CD&R counsel, and Davis Polk & Wardwell and Reed Smith advising McKesson.
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