OPCH ~+22% AH: McKesson + CD&R in advanced talks to buy Option Care (>$5B incl. debt) — deal could come today

[LondonNewsTrader]

Overnight M&A headline worth having on the pre-market list. The FT reported late Monday that McKesson (MCK) and private equity firm Clayton Dubilier & Rice are nearing a deal to buy Option Care Health (OPCH), the largest independent US home/outpatient infusion provider. Reported value: more than $5B including debt. Reuters picked it up shortly after.

Reported structure (per the FT, nothing signed): CD&R would hold 51% via a joint venture, McKesson 49%, with MCK holding a right to buy out CD&R's stake later. An announcement could come as soon as Tuesday, but the report explicitly says talks could still fall apart.

Context: OPCH was down ~27% YTD before the headline, after a soft Q2 (revenue $1.44B, +1.9% y/y) and narrowed FY guide. Enterprise value going in was roughly $4.6B with ~$1.2B of debt, so ">$5B incl. debt" isn't a huge premium on paper. Stock closed ~$23.37 and printed ~$28.3 after hours (~+21–22%).

Scalper read: until there's a signed deal and a per-share price, this trades on headline risk, not a spread. If terms hit pre-market, expect the gap to snap toward the offer and liquidity to dry up fast. If nothing is announced by the open, I'd expect a sloppy first 15 minutes and wouldn't chase the AH high. MCK is the sympathy name to watch for any "dilution / distraction" reaction.

Sources (public): Financial Times via Reuters, 5 Oct; Investing.com / Stocktwits after-hours coverage.

Anyone trading it pre-market, or waiting for actual terms? And what kind of premium would you need to see before treating it as an arb rather than a momentum trade?