Option Care Health (OPCH) $5.8B Take-Private Explained

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McKesson (MCK) and CD&R will buy Option Care Health for $32.05 a share in a $5.8 billion take-private, lifting OPCH stock about 33% on Tuesday, Oct. 6.

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What Did McKesson and CD&R Agree to Buy?

They agreed to buy all of Option Care Health and take it off the Nasdaq. Option Care employs more than 8,000 people, including over 5,000 clinicians, and serves patients in all 50 states. It delivers infusion therapies, which are drugs given intravenously or by injection, to patients at home rather than in hospitals.

CD&R will hold about 51% of the company at the outset. McKesson will invest about $1.4 billion for roughly 49% and account for the stake under the equity method, so Option Care's results will not be consolidated into McKesson's. Option Care will keep its current management team, led by chief executive John Rademacher. The agreement also sets out a framework under which McKesson could later buy CD&R's interest, subject to conditions and regulatory approvals.

Financing is committed by Bank of America, Barclays, Goldman Sachs, Jefferies and Wells Fargo.

Why Did Option Care Health Shares Jump 33%?

The shares jumped because the $32.05 offer sits far above where the stock traded before the announcement. OPCH rose as much as 33.1% in Tuesday trading and changed hands near $31 in the afternoon, a little under the offer price. That gap is the usual spread investors accept while a deal awaits approvals. Volume reached about 19.3 million shares by early afternoon, against an average of roughly 3.2 million.

The stock had already been under pressure. Its 52-week range runs from $18.01 to $36.80, and a weak first-quarter report earlier this year triggered a decline of about 24%. Even after the rally, OPCH trades roughly 15% below its high for the year. The buyout gives holders a cash exit at a premium to that depressed level.

What Does the Deal Mean for McKesson's Strategy?

The deal extends McKesson's push into specialty care. McKesson chair and chief executive Brian Tyler said the investment fits the company's long-term strategy of expanding access and affordability for innovative therapies across the care continuum. A minority stake lets the drug distributor gain exposure to home infusion without taking on the full balance-sheet burden of a $5.8 billion purchase. The buyout structure gives CD&R operational control while keeping a path open to full McKesson ownership.

Home infusion has grown as payers and providers move complex treatments out of hospitals into lower-cost settings. Option Care's national footprint is the main asset the buyers are paying for.

What Comes Next?

Closing requires approval from Option Care shareholders and regulatory clearances, and the parties expect to complete the transaction in the first half of 2027. Until then, OPCH will trade as a deal-spread stock, with its price tied to the offer and to the perceived chance of closing. Regulators are likely to look at McKesson's role as a major drug distributor alongside its new stake in a large infusion provider.

Outlook

The Option Care Health take-private pairs private-equity ownership with a strategic partner in one of the larger healthcare buyouts of the year. For shareholders, the outcome is a cash payout at $32.05 a share. For McKesson, it is a foothold in home infusion with an option to take full control later. The timeline now turns on the shareholder vote and the regulatory review through the first half of 2027.