McKesson Corporation has agreed to sell a 13% minority ownership interest in its Medical‑Surgical Solutions (MMS) business to Apollo Funds for $1.25 billion, valuing MMS at roughly $13 billion in enterprise terms. The transaction, announced on April 20, 2026, is the first step in McKesson’s plan to spin off MMS through an initial public offering and to position the unit as a standalone, well‑capitalized company.
The sale is a key element of McKesson’s broader portfolio transformation, which seeks to shed low‑margin assets and concentrate on higher‑margin specialty services such as oncology and prescription technology solutions. By divesting a minority stake, McKesson retains operating control and majority ownership of MMS while securing capital to accelerate the separation and future growth of the business.
McKesson will use the $1.25 billion proceeds to fund the planned IPO of MMS and to invest in its high‑margin platforms. The capital injection is intended to strengthen McKesson’s financial flexibility and to support the development of its core specialty services, which have driven recent revenue growth and earnings momentum.
"This transaction marks a key milestone in McKesson's planned separation of MMS. We are pleased to welcome Apollo as an important strategic and financial partner. Apollo's experience in supporting complex carve‑out and public market transactions will be additive as we position MMS for success, while maintaining McKesson's financial and strategic flexibility," said Brian Tyler, McKesson CEO. Apollo’s Maxwell David and Managing Director Jeff Armstrong added, "MMS is a leading healthcare platform with a talented team and strong market position, playing a key role in healthcare supply chain resiliency across non‑acute care settings. We believe the business is well positioned for continued growth, and that Apollo's Hybrid platform enables us to provide flexible, scaled capital to support the next phase."
The separation of MMS is expected to be completed by the second half of 2027, with Apollo’s expertise in carve‑out and public‑market transactions expected to accelerate the process. The partnership positions McKesson to unlock value from MMS while allowing the company to focus on its high‑margin specialty services, reinforcing its long‑term strategic trajectory.
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