Apollo to Acquire 13% Stake in McKesson's Medical-Surgical Solutions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 20 2026
0mins
Source: seekingalpha
- Investment Scale: Apollo Global Management's affiliated funds are set to invest $1.25 billion in convertible preferred equity in McKesson's Medical-Surgical Solutions unit, valuing it at approximately $13 billion, reflecting strong confidence in the healthcare sector.
- Strategic Milestone: McKesson CEO Brian Tyler stated that this transaction marks a key milestone in the company's planned separation of the Medical-Surgical Solutions unit, potentially laying the groundwork for future independent operations.
- Market Reaction: Following the announcement, Apollo's stock fell 1.66% to $122.55 in pre-market trading, while McKesson's stock rose 0.30% to $869.00, indicating a cautious market response to the deal.
- Industry Outlook: This investment not only strengthens Apollo's positioning in the healthcare sector but may also provide McKesson with additional capital support, thereby driving further expansion in the medical solutions market.
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Analyst Views on APO
Wall Street analysts forecast APO stock price to rise
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 127.790
Low
136.00
Averages
164.45
High
182.00
Current: 127.790
Low
136.00
Averages
164.45
High
182.00
About APO
Apollo Global Management, Inc. is a global alternative asset manager and a retirement services provider. It operates through three segments: Asset Management, Retirement Services and Principal Investing. The Asset Management segment focuses on three investing strategies: yield, hybrid, and equity. These strategies reflect the range of investment capabilities across its platform based on relative risk and return. The Retirement Services business is conducted by Athene Holding Ltd (Athene), a financial services company that specializes in issuing, reinsuring, and acquiring retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. Athene product lines include annuities and funding agreements. The Principal Investing segment includes realized performance fee income, realized investment income from its balance sheet investments, and certain allocable expenses related to corporate functions supporting the entire company.
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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