News
Apollo · Healthcare · IPO · McKesson
Apollo funds acquired a 13% minority ownership interest in McKesson Corporation's Medical-Surgical Solutions business for $1.25 billion, valuing the unit at $13 billion total enterprise value, as McKesson prepares the unit for an initial public offering.
McKesson retains operating control and majority ownership, continuing to consolidate results. The transaction represents a key milestone in McKesson’s planned separation of the Medical-Surgical Solutions business, which operates as a healthcare platform serving non-acute care settings.
CEO Brian Tyler stated Apollo’s experience in supporting carve-out and public market transactions will be beneficial. Apollo Partner Maxwell David and Managing Director Jeff Armstrong affirmed the business has a strong market position and is positioned for continued growth as a standalone company.
The transaction is subject to regulatory approvals; McKesson has not disclosed a specific timeline for the planned IPO. InvestingPro analysis indicates McKesson is currently undervalued based on its Fair Value analysis and carries an overall financial health score rated as "GREAT." Recent analyst updates present mixed perspectives on McKesson’s broader financial outlook, with some lowering price targets due to growth concerns while others increased targets, highlighting focus on higher-growth businesses and effective management of a CFO transition.
