McKesson, CD&R reportedly near $5 billion-plus deal for Option Care
OPCH•McKesson and Clayton Dubilier & Rice are reportedly nearing a deal to acquire Option Care Health for more than $5 billion, including debt. The deal could be announced as soon as Tuesday, though talks could still fall apart.
1. Possible acquisition
McKesson and private equity firm Clayton Dubilier & Rice are nearing a deal to acquire infusion services provider Option Care Health in a transaction valued at more than $5 billion, including debt. The deal could be announced as soon as Tuesday, but talks could still fall apart. Option Care shares rose 21% in extended trading following the report.
2. Strategic rationale
Leerink Partners analyst Michael Cherny said the strategic rationale made sense because the deal would expand McKesson's reach beyond physician offices into home and alternate-site care. Option Care provides infusion services that allow patients to receive intravenous medications at home or in other outpatient settings rather than in hospitals.
3. McKesson's expansion
McKesson agreed in August to buy Precision Medicine Group for about $2.25 billion as part of an effort to strengthen higher-growth businesses. Its oncology and multispecialty segment revenue rose 33% in the latest reported quarter, helped by growth in specialty distribution and contributions from acquisitions.
