Last updated: October 6, 2026
Shares of Option Care Health (NASDAQ: OPCH) surged as much as 22% after the Financial Times reported that healthcare distribution giant McKesson and private equity firm Clayton, Dubilier & Rice (CD&R) are closing in on a buyout worth more than $5 billion, including debt. The deal, which FT sources say could be finalized as soon as this week, would take the country’s largest independent home and alternate-site infusion provider private — and comes less than a day after Nvidia’s record-breaking run and Paramount Skydance’s blockbuster media merger kept M&A and mega-cap headlines dominating the tape.
McKesson & CD&R Near $5B+ Deal for Option Care Health
OPCH shares jump 22% on report of a take-private buyout — here’s the math and what Wall Street is saying.
What Happened
According to the Financial Times, CD&R would take a 51% controlling stake in Option Care Health while McKesson holds the remaining 49%, with McKesson retaining the right to buy out CD&R’s stake down the road. Sources cautioned that negotiations are ongoing and could still fall apart before signing. Option Care shares had actually fallen roughly 27% year-to-date heading into the report, leaving the company valued at around $4.6 billion in enterprise value (including about $1.2 billion in debt) — a backdrop that made it an attractive target for consolidation. The company serves more than 315,000 patients a year across 184 care centers nationwide, making it the largest independent provider of home and alternate-site infusion therapy in the U.S. For McKesson, the logic is straightforward: infusion services dovetail with its existing drug-distribution and specialty-pharmacy businesses, and the deal would deepen its push into higher-margin healthcare services.
Analyst Reaction
Wall Street’s initial read is mixed on price but broadly constructive on the strategic logic. Citizens analyst Constantine Davides maintained a Market Outperform rating and $32 price target, noting the reported $27–$29 per-share range “aligns reasonably” with an 11x 2026 EBITDA multiple and that a McKesson tie-up would create “logical synergies” with its drug-distribution and specialty operations. Truist Securities reiterated a Buy rating with a $30 target amid the sale discussions, while UBS kept its Buy rating and $39 target, citing Option Care’s “consistent execution.” Not everyone is as upbeat on the standalone business: Deutsche Bank downgraded the stock to Hold with a $24 target even after an EBITDA beat, pointing to slowing growth — a reminder that the buyout premium, not the underlying operating trend, is doing most of the work in Monday’s move. The stock’s pre-report average analyst target of $29.92 sits roughly in the middle of the reported offer range.
Why It Matters
The Option Care report lands in a week already thick with mega-deal headlines. It follows Paramount Skydance’s $110 billion Warner Bros. Discovery merger closing just days ago, and arrives as broader markets digest Nvidia’s run toward a $6 trillion market cap. Healthcare services M&A also tends to pick up when financing conditions are favorable, which makes the backdrop of Treasury yields sitting at 24-year highs worth watching — higher borrowing costs can make leveraged buyouts like this one more expensive to finance even as strategic logic stays sound. It’s also a reminder that beaten-down names with real cash flow — Option Care was down 27% year-to-date before the report — can become takeover targets precisely because of that underperformance, a dynamic that shows up across sectors, including in risk assets like crypto, where capital has also been rotating into deep-value setups. For the full lineup of company coverage, visit our Stock Fact Sheets hub.
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For informational purposes only. Not investment advice. The buyout described here is based on media reports of ongoing negotiations and is not yet confirmed by McKesson, CD&R, or Option Care Health — terms could change materially or the deal could fall apart entirely. Stock prices and deal figures are as of publication and change constantly; analyst price targets are estimates, not guarantees. Always do your own research or consult a licensed financial advisor before making investment decisions.
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