McKesson Corp. and private equity firm Clayton, Dubilier & Rice are in advanced negotiations to acquire Option Care Health. The deal is valued at more than $5 billion, including debt, and could be announced as soon as Tuesday. Talks could still fall apart. Option Care Health shares surged more than 22% in after-hours trading.
Under the proposed terms, Clayton, Dubilier & Rice would hold a 51% controlling stake. McKesson would own the remaining 49%. The agreement is expected to include a provision allowing McKesson to buy the private equity firm’s stake in the future.
The acquisition would expand McKesson’s presence in at-home and specialty infusion services, beyond its core drug distribution business. Option Care is the largest independent provider of home and alternate-site infusion services in the U.S.