McKesson Sells 13% of Medical-Surgical Unit to Apollo for $1.25B

Event summary

  • McKesson sells 13% stake in Medical-Surgical Solutions (MMS) to Apollo Funds for $1.25B.
  • Transaction values MMS at $13B enterprise valuation ahead of planned IPO.
  • McKesson retains majority ownership and operational control of MMS.
  • Deal subject to regulatory approvals and customary closing conditions.
  • Apollo's investment positions MMS for separation as standalone company.

The big picture

This transaction marks a significant step in McKesson's strategy to streamline its portfolio by separating its high-growth medical-surgical business. Apollo's $1.25B investment provides both capital and expertise for MMS's transition to a standalone company, reflecting broader trends of private equity backing for healthcare services IPOs. The deal highlights the increasing importance of supply chain resilience in non-acute care settings.

What we're watching

IPO Timing
Whether McKesson can complete MMS separation and IPO on its current timeline.
Apollo's Influence
How Apollo's strategic involvement will shape MMS's operational independence.
Valuation Realization
The pace at which MMS achieves its $13B valuation in public markets.