Drug distributor McKesson and private equity firm Clayton Dubilier & Rice agreed on Tuesday, October 6, to buy infusion therapy provider Option Care Health in a deal worth about $5.8 billion including debt, as the growth of specialty drugs for cancer and other conditions drives demand for medical infusion services.
The per-share offer price of $32.05 represents a 37.1 percent premium to Option Care's closing price on Monday. Under the agreement, CD&R will hold a majority ownership interest of about 51 percent, while McKesson will invest roughly $1.4 billion for a minority interest of about 49 percent, the companies said. Following the close, Option Care will remain a separate company led by its own management team, and its shares will be delisted from the Nasdaq.
Option Care Health is the largest independent infusion therapy provider in the United States, serving more than 308,000 patients annually through over 197 locations. Its services include home and ambulatory infusions, specialty pharmacy, and long-term care for complex conditions such as cancer and immune disorders.
Infusion therapy delivers medication directly into the bloodstream and is commonly used for conditions requiring sustained, regular dosing. The sector is riding a wave of growth as specialty drugs proliferate and treatment shifts from higher-cost hospital settings to homes and community clinics.
The deal is the latest move by the U.S. drug distribution giant to expand its healthcare services footprint. McKesson Chief Executive Officer Brian Tyler said the acquisition aligns with the company's long-term strategy to expand access to therapies across the care continuum. "As these therapies continue to grow in importance and their delivery becomes increasingly complex, McKesson is focused on investing in areas where our capabilities can help improve access and advance care in lower-cost community settings, at or closer to home," Tyler said.
Analysts welcomed the strategic logic. J.P. Morgan analyst Lisa Gill said McKesson's focus on specialty and the community setting makes the deal appealing, allowing the drug distributor to leverage its supply chain efficiencies — particularly in generics and biosimilars, which account for the large majority of Option Care's gross profit.
Leerink Partners analyst Michael Cherny said the transaction aligns McKesson with the site-of-care shift away from hospital and provider settings. McKesson already operates Inviva, a leading infusion network in Canada, and the deal fills in its U.S. footprint.
Option Care shares jumped 33 percent to $31.17 in premarket trading and closed up 32.7 percent at $31, nearly hugging the $32.05 takeover price. McKesson stock rose 0.7 percent to $921.67.
The transaction marks another private equity buyout of a home health services provider after Enhabit, as aging demographics and patient preference for treatment outside hospitals turn home-based care into a magnet for capital.
The deal is expected to close in the first half of 2027, subject to customary closing conditions including shareholder and regulatory approvals. The agreement also establishes a framework for McKesson's future acquisition of CD&R's stake, subject to specified conditions — effectively giving McKesson a path to full ownership down the road.
After closing, McKesson plans to use equity method accounting and record its share of Option Care's net income or loss in other income. For patients, little changes in the near term: the company stays independent, the management team stays put, and service locations remain open. The longer-term bet is that McKesson's supply-chain muscle can push down the cost of home infusion — and make the home-based care equation pencil out even better.