McKesson to Sell 13% Stake in Medical-Surgical Unit to Apollo

McKesson announced on April 20, 2026 that funds managed by affiliates of Apollo will invest $1.25 billion in convertible preferred equity to acquire roughly a 13% minority stake in its Medical‑Surgical Solutions (MMS) business, implying an approximate $13 billion enterprise valuation. McKesson will retain operating control and majority ownership while consolidating MMS results.

The transaction is structured as convertible preferred equity and is subject to regulatory approvals and customary closing conditions. McKesson characterized the deal as a milestone in its planned separation of MMS ahead of a proposed initial public offering, and Apollo partners highlighted the unit’s market position and the firm’s ability to support carve‑outs and public market transitions.

Market and analyst reaction noted that the Apollo investment reduces some valuation uncertainty around the standalone MMS while leaving questions on timing and final terms for a public listing. Reuters reporting and subsequent market notes quoted analysts calling the move a “crucial milestone” and noted that some sell‑side firms maintained positive ratings on McKesson stock following the announcement.

In context, McKesson first disclosed plans to separate its Medical‑Surgical Solutions segment in 2025 as part of a strategy to sharpen focus on higher‑growth areas; MMS serves ambulatory care sites such as physician offices, surgery centers and long‑term care settings and has been highlighted in company filings and presentations as a distinct reportable segment. The transaction is aligned with McKesson’s stated aim to create a well‑capitalized standalone MMS ahead of a public offering.

Analysts say the Apollo deal should support MMS’s path to a standalone listing by providing capital and an institutional backer familiar with carve‑outs, but they caution that execution risk, regulatory approvals and broader market conditions will shape the ultimate timing and pricing of any IPO. Investors will watch subsequent filings and management guidance for updates to the separation timetable and anticipated financial profile of the standalone MMS.