CD&R and McKesson have agreed to acquire Nasdaq-listed Option Care Health for $32.05 per share, giving the infusion services provider a total enterprise value of approximately $5.8 billion. CD&R will take a majority interest of approximately 51%, while McKesson will invest approximately $1.4 billion for a minority interest of approximately 49%. The transaction also establishes a framework for McKesson’s future acquisition of CD&R’s interest, subject to specified conditions and regulatory approvals.
The price represents a premium of approximately 37% to Option Care Health’s closing share price on October 5. Once the deal completes, Option Care Health will be delisted and become a privately held company, remaining a separate company led by its existing management team.
Option Care Health has provided infusion therapy for more than 45 years. It employs more than 8,000 people, including over 5,000 clinicians, and serves patients in all 50 states. Sarah Kim, a partner at CD&R, said CD&R will apply its healthcare services experience to help the company bring specialized therapies to more patients. McKesson said the investment fits its strategy of expanding access to specialty therapies in lower-cost community settings.
The transaction is expected to close in the first half of 2027. Centerview Partners served as financial adviser and Kirkland & Ellis as legal adviser to Option Care Health. BofA Securities, Barclays, Goldman Sachs, Jefferies and Wells Fargo are acting as financial advisers and providing committed financing to the consortium. Debevoise & Plimpton is legal adviser to CD&R, and Davis Polk & Wardwell and Reed Smith are legal advisers to McKesson.
Source: PE Hub · Summarized by HeadlinesBriefing