Option Care Health surges on report McKesson and CD&R nearing $5 billion deal
OPCH•Option Care Health shares rose 22% in extended trading after the Financial Times reportedly said McKesson and Clayton Dubilier & Rice were nearing a deal valuing the company at more than $5 billion, including debt. The deal could be reached as soon as Tuesday, but discussions could fall apart.
1. Deal discussions
McKesson and private equity firm Clayton Dubilier & Rice are nearing a deal to buy Option Care Health, valuing the business at more than $5 billion including debt, the Financial Times reportedly said, citing people familiar with the discussions. The deal could be reached as soon as Tuesday, but has not been formally agreed and discussions could fall apart.
2. Proposed ownership
Under terms being discussed, CD&R would own a 51% stake and McKesson a 49% stake. McKesson would have the right to buy the buyout firm's stake in the future. Option Care Health shares rose 22% to $28.45 in extended trading.
