Oct 5 (Reuters) – US drug distributor McKesson and private equity firm Clayton Dubilier & Rice are nearing a deal to acquire infusion services provider Option Care Health in a transaction valued at more than $5 billion including debt, the Financial Times reported on Monday, citing people familiar with the matter.
Option Care’s shares rose 21% in extended trading following the report.
The deal could be announced as soon as Tuesday, although talks could still fall apart, the report said.
The reported acquisition would mark McKesson’s latest deal as it seeks to expand its healthcare services footprint. In August, the company agreed to buy Precision Medicine Group for about $2.25 billion as part of a years-long effort to strengthen higher-growth businesses.
Option Care provides infusion services that allow patients to receive intravenous medications at home or in other outpatient settings rather than in hospitals.
McKesson had been reshaping its portfolio by exiting non-core assets and investing in areas such as oncology and specialty care.
Revenue in its oncology & multispecialty segment rose 33% in the latest reported quarter, helped by growth in specialty distribution and contributions from acquisitions.
McKesson, CD&R and Option Care did not immediately respond to Reuters’ requests for comment on the report.
(Reporting by Sahil Pandey in Bengaluru; Editing by Maju Samuel)
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