Option Care Health Stock Surges 22% on Report of $5 Billion McKesson-CD&R Takeover
Option Care Health stock surged about 22% in after-hours trading on Monday after a report said McKesson and private-equity firm Clayton, Dubilier & Rice (CD&R) are nearing a deal to acquire the U.S. infusion-services provider for more than $5 billion, including debt.
The reported transaction would mark a significant expansion of McKesson's healthcare-services business and could give Option Care shareholders a major premium after the stock had fallen sharply earlier in 2026.
However, investors should note that the takeover had not been officially announced at the time of the report. Reuters said the deal could be announced as soon as Tuesday, while negotiations could still break down. McKesson, CD&R and Option Care did not immediately comment on the report.
Why Option Care Health Stock Jumped 22%
The immediate catalyst was the Financial Times report that McKesson and CD&R were in advanced discussions to acquire Option Care Health.
Under the reported structure, CD&R would take a 51% controlling stake, while McKesson would own the remaining 49%. The arrangement could also give McKesson the right to acquire CD&R's stake at a later date.
For shareholders, the potential takeover creates the possibility of receiving a substantial premium to the company's recent market value.
Before Monday's after-hours surge, Option Care's shares had fallen about 27% for the year, according to reports, leaving the company with an enterprise value of approximately $4.6 billion, including about $1.2 billion of debt.
That helps explain why takeover speculation produced such a sharp reaction. Investors were effectively repricing the company around the possibility of a strategic acquisition rather than its standalone valuation.
Still, a reported deal is not the same as a completed transaction. Until the companies announce definitive terms, investors face the risk that negotiations could change or fail.
What Does Option Care Health Do?
Option Care Health is the largest independent provider of home and alternate-site infusion services in the United States.
Its business allows patients to receive intravenous medications and other complex therapies at home or in outpatient settings rather than remaining in hospitals. The company serves patients with conditions including cancer, autoimmune diseases and serious infections.
The company reported that it served more than 315,000 patients during the previous year and operates through a network of care centers and infusion facilities.
Its business model sits within a broader shift toward delivering more healthcare outside traditional hospital settings. For patients and healthcare providers, home and alternate-site treatment can offer greater convenience, while potentially reducing reliance on expensive hospital-based care for appropriate therapies.
That makes Option Care strategically interesting to larger healthcare companies looking to expand beyond traditional drug distribution.
Why McKesson May Want Option Care
The reported deal would fit with McKesson's broader strategy of expanding its higher-growth healthcare-services businesses.
McKesson is traditionally known as one of the world's major pharmaceutical distributors, but it has increasingly invested in areas such as oncology, specialty care and other healthcare services.
Reuters noted that the potential acquisition would expand McKesson's reach beyond physician offices into home and alternate-site care. The company had also agreed in August to acquire Precision Medicine Group for about $2.25 billion, reinforcing its push into higher-growth healthcare businesses.
Option Care could therefore provide McKesson with an established platform for delivering specialty therapies outside hospitals.
The strategic rationale becomes particularly relevant as complex biologic and specialty treatments become more important in healthcare. These therapies often require specialized administration and patient support, creating opportunities for companies with established infusion networks.
Option Care's Financial Performance Was Still Growing
The takeover report comes even though Option Care had recently been dealing with relatively modest revenue growth.
For the second quarter of 2026, Option Care reported $1.442 billion in revenue, up 1.9% from a year earlier. GAAP net income increased 6.7% to $53.9 million, while adjusted EBITDA rose 3% to $117.5 million.
The company also generated $184 million of operating cash flow during the quarter and repurchased $150 million of its own shares.
For the full year, management was forecasting revenue of $5.675 billion to $5.775 billion, adjusted EBITDA of $480 million to $495 million and operating cash flow of at least $320 million.
These figures show that Option Care remained profitable and cash-generative, even as revenue growth moderated.
That combination can make a healthcare-services company attractive to strategic buyers and private-equity investors because the business has an existing operating platform and recurring healthcare demand rather than being dependent entirely on an unproven product.
The Bigger Issue: Growth Had Been Uneven
While the takeover speculation is clearly positive for the stock in the short term, Option Care's recent results also explain why investors had been more cautious about the company.
In the first quarter, revenue increased only 1.3% year over year, while adjusted EBITDA fell 6.3%. Management said the quarter reflected mixed performance, with strong growth in its acute portfolio offset by weakness in parts of its chronic business.
The company subsequently maintained its 2026 financial outlook, but the relatively slow revenue growth remained an issue for investors.
A potential acquisition changes the valuation discussion. Instead of valuing Option Care solely on its near-term organic growth, buyers may be willing to pay more because they see opportunities to improve scale, combine operations or expand the company's reach.
That is particularly relevant for McKesson, which could potentially integrate Option Care's services into a much larger healthcare ecosystem.
What the Deal Could Mean for McKesson
The potential acquisition would also have implications for McKesson shareholders.
McKesson closed Monday at $915.45, up 1.46% on the day, before the Option Care report emerged.
The market's reaction to the acquisition could depend on the final purchase price, financing structure and expected synergies.
"Synergies" refers to cost savings or additional revenue that can result when two businesses are combined. In this case, McKesson could potentially benefit from combining its existing healthcare distribution capabilities with Option Care's infusion-services platform.
However, paying a significant premium for a company with relatively modest recent revenue growth could also create execution and valuation risks.
For McKesson investors, the important details will therefore be the final purchase price, funding arrangements and management's expectations for earnings and cash flow.
Why CD&R's Role Matters
The reported involvement of CD&R adds another dimension to the proposed transaction.
Private-equity firms typically seek businesses where operational improvements, strategic repositioning or financial restructuring can create value over time. Under the reported arrangement, CD&R would initially hold the controlling stake, while McKesson would own 49%
The reported provision giving McKesson a future option to acquire CD&R's stake could also provide McKesson with a path toward greater ownership later.
For Option Care, the structure could provide access to both McKesson's healthcare expertise and CD&R's private-equity resources.
But these remain proposed terms reported by the Financial Times rather than finalized transaction terms.
What Investors Should Watch Next
Option Care Health investors should focus on several developments over the coming days:
Whether McKesson, CD&R and Option Care formally announce a definitive agreement
The final purchase price and valuation
The proportion of the transaction financed with debt or cash
The exact ownership structure
Any conditions attached to the transaction
Regulatory approvals that may be required
McKesson's expected financial benefits from the deal
Whether Option Care's existing business outlook changes
The most important near-term catalyst is confirmation of the reported transaction.
If a formal deal is announced at terms broadly consistent with the reported valuation, the stock could begin trading closer to the implied acquisition value. If negotiations fail, however, some of the takeover-related gains could disappear quickly.
Bottom Line
Option Care Health stock surged about 22% after a report that McKesson and CD&R are nearing a more than $5 billion acquisition, including debt. The potential deal is strategically significant because it would give McKesson a larger presence in home and alternate-site infusion care while giving CD&R a controlling stake under the reported structure.
For Option Care shareholders, the potential takeover represents a sharp change in the investment story after a period of weaker share-price performance and slower revenue growth. For McKesson investors, the key question will be whether the acquisition can generate enough strategic and financial benefits to justify the price.
For now, the deal remains reported and under negotiation, not completed. The next major development will be whether the parties formally announce an agreement and reveal its final terms.
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This article is for informational and educational purposes only and should not be considered investment advice.