McKesson Partners with Apollo Funds for MMS Stake Sale
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 20 2026
0mins
Should l Buy MCK?
Source: NASDAQ.COM
- Strategic Milestone: McKesson Corporation announced a deal with Apollo Funds to sell a minority stake in its Medical-Surgical Solutions (MMS) business, marking a significant milestone in its separation strategy in preparation for a planned initial public offering (IPO).
- Significant Investment: Apollo Funds will invest $1.25 billion in convertible preferred equity of MMS to acquire approximately 13% minority interest, valuing MMS at around $13 billion, reflecting strong market confidence in the business.
- Positive Market Reaction: This transaction not only provides McKesson with financial support but also strengthens its market position in the healthcare sector, expected to drive future growth and enhance investor confidence.
- Future Development Potential: By partnering with Apollo Funds, McKesson can accelerate the independent growth of MMS, further optimizing its business structure and laying a solid foundation for the upcoming IPO to attract more investor interest.
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Analyst Views on MCK
Wall Street analysts forecast MCK stock price to rise
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 754.760
Low
880.00
Averages
942.83
High
1000.00
Current: 754.760
Low
880.00
Averages
942.83
High
1000.00
About MCK
McKesson Corporation is a diversified healthcare services company, which focuses on advancing health outcomes for patients everywhere. Its U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products in the United States (U.S.). The Prescription Technology Solutions (RxTS) segment helps solve medication access, affordability and adherence challenges for patients by working across healthcare to connect patients, pharmacies, pharmacy benefit managers, health plans, and biopharma companies. The Medical-Surgical Solutions provides medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, hospital reference labs, and home healthcare agencies. The International segment provides distribution and services to wholesale, institutional, and retail customers in Canada and Norway. It also offers oncology and specialty solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Shareholder Return Initiatives: The company returned $5.1 billion to shareholders through share repurchases in fiscal 2026 and anticipates free cash flow to remain between $4.5 billion and $4.9 billion in fiscal 2027, reflecting management's confidence in future cash generation and commitment to shareholders.
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- Future Growth Outlook: The company projects adjusted earnings per diluted share in the range of $43.80 to $44.60 for fiscal 2027, with revenue growth expectations of 14.5% to 18.5% in the oncology and multispecialty segment, showcasing a positive outlook on new market opportunities.
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- Strong Financial Performance: McKesson reported an adjusted earnings per diluted share of $11.69 for Q4 2026, with consolidated revenues increasing by 6% to $96.3 billion and gross profit rising by 14% to $3.9 billion, indicating robust market performance and profitability.
- Shareholder Return Initiatives: The company returned $5.1 billion to shareholders through share repurchases in fiscal 2026 and anticipates free cash flow to remain between $4.5 billion and $4.9 billion in fiscal 2027, reflecting management's confidence in future cash generation and commitment to shareholders.
- Separation Progress: McKesson is advancing its plan to spin off its Medical-Surgical Solutions segment into an independent entity, having secured a $1.25 billion strategic investment from Apollo, which is expected to unlock shareholder value and enhance strategic clarity.
- Future Growth Outlook: The company projects adjusted earnings per diluted share in the range of $43.80 to $44.60 for fiscal 2027, with revenue growth expectations of 14.5% to 18.5% in the oncology and multispecialty segment, showcasing a positive outlook on new market opportunities.
See More
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- Divergent Tech Stock Performance: As AI-related stocks pull back, cybersecurity software stocks like CrowdStrike and Palo Alto Networks surged, crossing $500 and $190 respectively for the first time, indicating increased market confidence in their business models and potentially attracting more investor interest.
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- Employment Data Expectations: Economists forecast a 65,000 increase in April's nonfarm payrolls with the unemployment rate steady at 4.3%, while average hourly earnings are expected to rise by 3.8%, providing crucial economic health indicators that could influence investor confidence.
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- DuPont Performance Focus: DuPont will also report on Tuesday, with its Healthcare & Water Technologies segment expected to achieve mid-single-digit organic growth, reflecting the company's strategic direction post-electronics spin-off, and investors will closely watch for commentary on changes in customer behavior.
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- Unemployment Rate Stability: The unemployment rate is anticipated to remain steady at 4.3%, suggesting that despite the decrease in job additions, the labor market remains relatively stable, potentially alleviating fears of an economic downturn.
- GDP Growth Situation: The U.S. GDP grew at a seasonally adjusted annualized rate of 2% in the first quarter, higher than the fourth quarter's 0.5% but below the 2.2% estimate, reflecting economic sluggishness that may influence future monetary policy decisions.
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- Quarterly Earnings Beat: The company reported an adjusted profit of $3.17 per share for the third quarter, surpassing analyst expectations of $2.79 per share, indicating strong performance in the high-margin pharmaceuticals sector.
- Sales Miss Expectations: Despite reporting total sales of $60.9 billion for the third quarter, this figure fell short of the $61.7 billion analysts had anticipated, suggesting challenges in overall sales despite high demand.
- Specialty Drug Market Expansion: Cardinal Health is actively expanding its presence in the specialty drug market through acquisitions of physician practices and specialty care networks, aiming to diversify beyond traditional drug distribution in response to market dynamics.
See More
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