Key insights
- Option Care Health (OPCH) shares surged 22% on a Financial Times report indicating advanced talks for a $5 billion acquisition by McKesson and private equity firm CD&R. CD&R would hold a 51% stake, with McKesson holding 49% and a future purchase option. The deal, if finalized, would represent a significant premium for OPCH shareholders after a year-to-date decline. McKesson's involvement suggests potential strategic integration within its healthcare services.
Investing.com -- Shares of Option Care Health (NASDAQ: OPCH) surged 22% in after-hours trading on Monday following a Financial Times report that healthcare giant McKesson and private equity firm Clayton Dubilier & Rice (CD&R) are in advanced talks to acquire the infusion services provider. The potential transaction is expected to value the company at more than $5 billion, including debt.
Citing people familiar with the matter, the report noted that an agreement could be reached as soon as Tuesday, though negotiations are ongoing and could still fall apart.
Under the proposed terms, CD&R would take a 51% controlling stake in Option Care, while McKesson would hold the remaining 49%. Notably, the agreement would include a provision granting McKesson the right to purchase the buyout firm’s stake in the future.
Prior to Monday’s after-hours spike, Option Care shares had fallen 27% year-to-date. That decline left the company with an enterprise value of roughly $4.6 billion, which includes a $1.2 billion debt load.
As the largest independent provider of medical infusion services in the U.S., Option Care Health served over 315,000 patients nationwide last year. The company delivers specialty medications for conditions such as cancer, autoimmune diseases, and serious infections via at-home services and across its 184 dedicated care centers.
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