Apollo affiliates are set to invest $1.25 billion in convertible preferred equity of McKesson’s medical‑surgical solutions unit, acquiring roughly 13% of the business. The deal assigns a $13 billion valuation to the segment, while McKesson keeps majority control and consolidates its results for shareholders, the transaction signals confidence in the unit’s growth prospects today.

McKesson’s planned spinoff of the medical‑surgical unit has long been on the company’s agenda, aiming to unlock value for investors. By selling a minority stake to Apollo, the distributor preserves operational oversight while raising capital that could accelerate expansion into hospitals and outpatient facilities and improve service delivery efficiency across the sector in the near future.

The $1.25 billion investment reflects Apollo’s belief that the medical‑surgical segment can generate steady cash flows, while McKesson benefits from a steady income stream without diluting control. Analysts view the move as a strategic step that could position the unit for a smoother independent listing once the spinoff materializes and enhance market visibility for its key products.

This transaction underscores a broader trend of large distributors monetizing non‑core assets to streamline operations. Investors will monitor how the convertible preferred structure performs and whether McKesson can leverage the capital to fund further acquisitions or cost‑cutting initiatives. The deal finalizes the first phase of the company’s restructuring plan and signals a commitment to long‑term growth.