CD&R and McKesson agree to acquire Option Care Health

Overview

Updated Oct 8

Option Care Health, a leading provider of home and alternate-site infusion services, is being taken private. Private equity firm Clayton Dubilier & Rice (CD&R) and drug distributor McKesson agreed on October 6 to acquire it for $32.05 per share, about $5.8 billion in total. Option Care's board approved the deal unanimously; it is set to close in the first half of 2027.

After closing, CD&R will own 51% of Option Care and McKesson about 49%, with a framework for McKesson to buy CD&R's stake later. The buyers have committed $2.87 billion in equity and $3.15 billion in debt. The deal reflects the shift of expensive specialty-drug infusions from hospitals to patients' homes.

Why it matters

This deal could shift where patients receive IV specialty drugs, moving more care from hospitals to homes.

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Key Indicators

$5.8B

Total enterprise value

Includes debt and equity for the acquisition.

37%

Premium to Oct 5 closing price

Premium to Option Care Health's closing price on October 5, 2026.

51%

CD&R majority stake

CD&R will hold about 51% of Option Care Health after closing.

$1.4B

McKesson investment

McKesson will invest about $1.4 billion for a 49% minority stake.

Voices

Curated perspectives — historical figures and your fellow readers.

Organizations Involved

Clayton Dubilier & Rice

Private Equity Firm

Acquirer (majority owner)

Private equity firm that will hold about 51% of Option Care Health after closing.

McKesson Corporation

Drug Distributor

Acquirer (minority owner)

One of the largest pharmaceutical distributors in the U.S., investing $1.4 billion for a 49% stake.

Option Care Health, Inc.

Healthcare Services Company

Target

Provider of home and alternate-site infusion services, to be taken private.

Timeline

2 events Latest: October 6th, 2026 · 1 month ago

October 2026
CD&R and McKesson sign definitive agreement to acquire Option Care Health
Latest M&A

The two firms agree to pay $32.05 per share, valuing the company at about $5.8 billion. CD&R will hold 51%, McKesson 49%.
October 6th, 2026
Citizens downgrades Option Care Health on deal terms
Analyst Rating

Citizens lowered its rating on Option Care Health following the announced acquisition at $32.05 per share, a 37% premium to the prior close.
October 6th, 2026

Scenarios

Deal closes in first half of 2027

Likely Resolves by Q2 2027

Discussed by: CD&R and McKesson press release; Bloomberg Law

Stockholders approve the merger and regulators clear it without major conditions. The deal closes as planned, Option Care Health is delisted from Nasdaq, and McKesson begins accounting for its stake using the equity method.

Regulators block or delay the deal

Possible Resolves by Q2 2027

Discussed by: Reuters; antitrust analysts

The Federal Trade Commission or Department of Justice raises concerns about McKesson's distribution power combined with home infusion services. They could file a lawsuit to block the merger or require divestitures, pushing the close beyond 2027.

Stockholders reject the merger

Unlikely Resolves by Q1 2027

Discussed by: Proxy advisory firms; shareholder activists

A majority of Option Care Health's stockholders vote against the deal, possibly due to the 37% premium being seen as too low. The merger fails and the company remains public.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2019

Option Care and BioScrip merger (2019)

Option Care and BioScrip, two home infusion providers, merged to create a larger company with a national footprint. The merger was aimed at achieving scale in a fragmented market.

Then

The combined company became one of the largest independent home infusion providers.

Now

It set the stage for further consolidation, culminating in this acquisition.

Why this matters now

Shows the consolidation trend in home infusion that this deal continues.

2018

CVS Health and Aetna merger (2018)

CVS Health acquired Aetna for $69 billion, combining a pharmacy chain with a health insurer. The deal aimed to create a vertically integrated healthcare company that could manage costs and improve care coordination.

Then

The merger closed in 2018 after regulatory approval.

Now

It became a model for vertical integration in healthcare, with companies seeking to control more of the patient journey.

Why this matters now

McKesson's minority stake in Option Care Health is a similar vertical move, giving a distributor control over a care delivery channel.