McKesson and Clayton, Dubilier & Rice agreed to acquire home-infusion provider Option Care Health at an enterprise value of about 5.8 billion dollars. McKesson plans a 1.4 billion dollar investment for approximately 49 per cent, with CD&R holding the rest. The offer is 32.05 dollars a share. A framework for McKesson to buy the remaining stake later remains conditional.
McKesson and private-equity firm Clayton, Dubilier & Rice agreed to acquire Option Care Health for 32.05 dollars a share in cash. The stated enterprise value is approximately 5.8 billion dollars including debt. Option Care provides infusion treatments, in which medicines are administered at home or at other locations outside hospitals. The agreement announced on October 6 sets out a proposed acquisition.[1], [2]
CD&R would own approximately 51 per cent of Option Care, while McKesson plans to invest about 1.4 billion dollars for the remaining 49 per cent. The cash offer is 8.68 dollars above the stock’s closing price on the preceding Monday. The transaction would take Option Care private, with its shares leaving Nasdaq after completion. McKesson’s initial investment therefore gives the drug distributor a minority holding in the infusion business.[1]
The agreement establishes a framework under which McKesson could subsequently acquire CD&R’s interest. That possible purchase depends on specified conditions and regulatory approval. The proposal also extends McKesson’s move into healthcare services alongside its distribution business. The company has built an oncology network and acquired businesses serving prior-authorization processes and eye care. Rivals Cencora and Cardinal Health have also expanded beyond distribution.[1]
