Option Care Health Inc. (NASDAQ:OPCH) soared by as much as 33 percent on Tuesday to $31.11 apiece following news that it is merging with Clayson, Dubilier, & Rice LLC (CD&R) and McKesson Corp. for $5.8 billion.
In a joint statement, the firms said that they entered into a definitive agreement under which they will acquire the listed infusion therapy provider at a 37 percent premium of $32.05 over its closing price of $23.37 on Monday, prior to the announcement.
CD&R will serve as the controlling shareholder, at 51 percent ownership, while McKesson will hold the remaining 49 percent.
For illustration purposes only. Photo by Pavel Danilyuk on Pexels
“This transaction represents a great outcome for Option Care Health and our stockholders, and I want to thank our Board of Directors for their rigorous process and diligence,” Option Care CEO John Rademacher said.
“For more than 45 years, Option Care Health has helped transform the way infusion therapy is delivered, led by our team members’ unwavering commitment to providing extraordinary care to patients. We will continue to enhance our platform and deepen our partnerships with hospitals and health systems, physicians, payers, and biopharma manufacturers,” he added.
The transaction is expected for completion in the first half of 2027, subject to customary closing conditions, including approval by Option Care Health Inc.’s shareholders. The infusion therapy firm will cease trading on the Nasdaq exchange.
Positioned for Growth
The transaction is expected to further grow Option Care Health Inc. in its core business through McKesson’s support in continuing its innovation in specialty, rare, and orphan therapies and the increasing need for alternative infusion services.
It is also set to expand patient access through community-based care with home and ambulatory infusion capabilities outside traditional care settings.
Hedge Fund Conviction Nosedives
Institutional sentiment fell sharply for Option Care Health Inc. in the second quarter of the year, as evidenced by the sharp decline in committed capital despite the increase in the number of hedge funds seeking to establish positions in the stock.
During the period, data from Insider Monkey showed that 38 hedge funds established positions in the company, up from 35 in the first quarter of the year.
However, their combined holdings decreased by 42 percent to $498 million from $861 million quarter-on-quarter.
Q3 Earnings
Option Care Health Inc. is set to release the results of its earnings performance in the third quarter of the year on November 4, 2026.
Given the transaction announcement, the company has cancelled its live conference call and withdrawn its previously disclosed financial guidance.
For the period, the company had expected revenue growth in the low to mid single digits on a sequential basis, as well as a mid-single-digit growth in adjusted EBITDA.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
