Option Care Health jumps as $5 billion-plus takeover deal reportedly nears
OPCH•Option Care Health shares rose 23.2% to $28.79 premarket after a report said McKesson and private equity firm CD&R were nearing a deal to buy the company for more than $5 billion, including debt.
1. Takeover talks reported
McKesson and CD&R were nearing a deal to buy Option Care Health for more than $5 billion, including debt, the Financial Times reported. McKesson declined to comment, while CD&R and Option Care did not immediately respond to requests for comment.
2. Analysts assess valuation
Option Care Health had a market capitalization of about $3.5 billion as of the previous close. William Blair analysts called the valuation “low for Option Care / attractive for McKesson/CD&R” and said the reported premium of more than 20% to Monday’s close was a slight disappointment for Option Care; they would not be surprised if one or more competing bids emerged. Shares were down 26.7% year to date as of the previous close.
