McKesson and CD&R to Acquire Option Care Health for $32.05/Shr in $5.8B Deal
OPCH sits 56% above its 52-week low of $18.01.
Summary
McKesson and Clayton Dubilier & Rice have reached a definitive agreement to acquire Option Care Health for $32.05 per share, implying an enterprise value of about $5.8 billion. This follows yesterday's report that the parties were in advanced talks. CD&R will hold a majority ownership interest of about 51%, while McKesson will invest about $1.4 billion for a minority interest of approximately 49%. Option Care Health will remain a separate company led by its own management team. The transaction also establishes a framework for McKesson's future acquisition of CD&R's interest in Option Care Health. The per-share price represents a premium to the last close of $28.16. The deal takes the company private and removes the overhang of the CID therapy headwinds that pressured recent results. Shareholders will receive cash, and the transaction is expected to close subject to customary conditions and regulatory approvals. Option Care Health is withdrawing its previously disclosed financial guidance. The merger agreement includes a $145.96 million company termination fee and a $291.93 million parent termination fee, with equity commitments of $2.87 billion and debt commitments of $3.15 billion plus a $500 million revolving credit facility.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — The merger agreement includes a $145.96 million company termination fee and a $291.93 million parent termination fee, with equity commitments of $2.87 billion and debt commitments of $3.15 billion plus a $500 million revolving credit facility.
At the time of this announcement, OPCH was trading at $28.16 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $3.5B. The 52-week trading range was $18.01 to $36.80. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.