CD&R, McKesson to Acquire At-Home Infusion Therapy Provider for $5.8 Billion
- Private equity giant CD&R joins forces with McKesson for mega-merger
- Option Care Health deal valued at a cool $5.8 billion including debt
- Consolidation wave hits home-based medical care industry
- Wall Street cheers as healthcare middle-men tighten their grip
Brief Summary
In a massive move to dominate the lucrative home-care sector, McKesson and Clayton, Duberstein & Rice (CD&R) have agreed to drop $5.8 billion to acquire Option Care Health. The deal marks another chapter in the relentless consolidation of the healthcare industry, pulling a major player in infusion therapy services under the umbrella of a massive distributor.
Why This Matters
This merger signals a continued shift toward corporate-controlled home healthcare, meaning your medical services are increasingly flowing through a smaller number of massive, interconnected entities. Expect less competition and more standardized, bottom-line-focused service as these giants integrate their supply chains. When the biggest players consolidate, the cost of medical delivery rarely goes down for the end user, and the lack of market diversity often leaves you with fewer choices when it comes to who manages your care.