– McKesson Corporation announced a definitive agreement with funds managed by affiliates of Apollo Global Management
– Apollo Funds will acquire a minority stake in McKesson’s Medical-Surgical Solutions (MMS) business
– The deal is part of McKesson’s strategy to separate MMS ahead of a planned IPO
– Apollo will invest $1.25 billion in convertible preferred equity
– This investment represents approximately a 13% ownership stake in MMS
– The transaction values MMS at around $13 billion enterprise value
– McKesson will retain majority ownership and operational control of MMS
– MMS will continue to be consolidated in McKesson’s financial reporting
– The deal is subject to regulatory approvals and standard closing conditions
– Brian Tyler, CEO, McKesson, described the deal as a key milestone in the MMS separation strategy
– Maxwell David and Jeffrey Armstrong highlighted MMS’s strong market position and growth potential
– Apollo’s Hybrid platform will provide flexible capital to support MMS’s transition into a standalone company
