Option Care Health has agreed to be acquired by CD&R and McKesson for $32.05 per share in cash, representing approximately $5.8 billion in enterprise value and a 37% premium to its October 5 closing price.
Key Investor Takeaways
- Option Care Health (NASDAQ:OPCH) agreed to a $32.05-per-share cash acquisition by CD&R and McKesson (NYSE:MCK), valuing the business at approximately $5.8 billion.
- The offer represents a roughly 37% premium to OPCH’s October 5, 2026 closing share price.
- CD&R will initially own approximately 51% of Option Care Health, while McKesson will invest about $1.4 billion for approximately 49%.
- The deal includes a framework allowing McKesson to acquire CD&R’s interest in the future, subject to specified conditions and regulatory approvals.
- Closing is expected in the first half of 2027 and requires Option Care Health shareholder approval and regulatory clearances.
Why OPCH Stock Is in Focus
Option Care Health entered into a definitive agreement to be acquired by private investment firm CD&R and healthcare services company McKesson for $32.05 per share in cash.
The transaction carries an enterprise value of approximately $5.8 billion. The agreed price represents a premium of about 37% to Option Care Health’s October 5 closing price, the final full trading session before the announcement.
Option Care Health’s board unanimously approved the transaction following what Chairman Harry Kraemer described as an extensive assessment with the company’s advisers.
Following completion, CD&R will hold a majority stake of approximately 51%, while McKesson will invest around $1.4 billion for approximately 49%. Option Care Health will continue operating as a separate business under its existing management team.
Once the acquisition closes, OPCH shares will cease trading on Nasdaq and the company will become privately held.
Why This Matters for Investors
For OPCH shareholders, the $32.05 cash consideration establishes a defined acquisition value, shifting the investment focus away from the company’s standalone operating outlook and toward the probability and timing of deal completion.
The 37% premium provides immediate value relative to the unaffected October 5 closing price, but the transaction remains subject to shareholder approval, regulatory clearance and other customary closing conditions. Until those requirements are satisfied, the potential for the transaction not to close remains relevant.
For McKesson investors, the transaction represents a strategic expansion into home and alternate-site infusion services. McKesson said Option Care Health’s national footprint complements its strategy of expanding access to complex specialty therapies in community and lower-cost care settings.
McKesson’s initial investment is structured as a minority position, but the agreement establishes a framework for it eventually to acquire CD&R’s stake. That creates a potential path toward greater ownership of Option Care Health, although any future acquisition would remain subject to specified conditions and regulatory approvals.
Following the initial closing, McKesson plans to use the equity method to account for its OPCH investment, recognising its share of Option Care Health’s net income or loss within Other Income, net.
What to Watch Next
Option Care Health shareholder approval and required regulatory clearances are the main milestones ahead of the targeted first-half 2027 closing.
OPCH is scheduled to report third-quarter results on November 4, although it will not hold its usual earnings conference call and has withdrawn its previously issued financial guidance following the acquisition agreement.
Investors can also watch for additional information on the framework allowing McKesson to acquire CD&R’s 51% interest in the future, which could ultimately make Option Care Health a substantially larger strategic commitment for McKesson.