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Corporate Score 62 Bullish

McKesson Partners with Apollo Funds in $1.25 Billion Strategic Investment in MMS

Apr 20, 2026 12:36 UTC
MCK
Medium term

McKesson Corporation has entered an agreement with Apollo Funds for a minority stake in its Medical-Surgical Solutions business. The deal is a key step in the company's strategy to prepare the unit for a future public listing.

  • Apollo Funds invests $1.25 billion for a 13% stake
  • MMS business valued at approximately $13 billion
  • Deal supports McKesson's separation strategy for MMS
  • Transaction prepares the unit for a planned IPO
  • Investment structured as convertible preferred equity

McKesson Corporation (MCK) announced on Monday that it has reached a definitive agreement with Apollo Funds to sell a minority ownership interest in its Medical-Surgical Solutions (MMS) business. The move is designed to provide the unit with strategic capital and external validation as it moves toward independence. This transaction is a critical milestone in McKesson's broader separation strategy. By carving out the MMS business, the healthcare services provider is positioning the unit for a planned initial public offering, allowing the market to value the medical-surgical operations independently from the parent company. Under the terms of the deal, Apollo Funds will invest $1.25 billion via convertible preferred equity. This investment grants Apollo approximately a 13% minority interest in the business, effectively valuing the Medical-Surgical Solutions division at roughly $13 billion. From a market perspective, the partnership with a major private equity firm like Apollo suggests strong institutional confidence in the MMS business model. Investors will likely view this as a value-unlocking event, as the path toward an IPO becomes clearer for McKesson shareholders.

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