McKesson sells stake in Medical-Surgical Solutions

IRVING, Texas – McKesson has taken another step toward separating its Medical-Surgical Solutions (MMS) business by selling a minority interest to funds managed by Apollo.

Apollo Funds will invest $1.25 billion in convertible preferred equity of MMS to acquire an approximately 13% minority interest, valuing the business at approximately $13 billion.

“This transaction marks a key milestone in McKesson’s planned separation of MMS,” said Brian Tyler, CEO of McKesson. “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. We look forward to working together to execute the separation in a manner that maximizes shareholder value, and establishing a well-capitalized, world-class medical surgical supply and solutions company.”

McKesson will retain operating control and majority ownership of MMS. It will consolidate the results for financial reporting.

As of Dec. 31, 2025, Apollo had approximately $938 billion of assets under management.

“MMS is a leading health care platform with a talented team and strong market position, playing a key role in health care supply chain resiliency across non-acute care settings,” said Apollo Partner Maxwell David and Managing Director Jeff Armstrong. “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 of development as MMS prepares to operate as a standalone company.”

The transaction is subject to regulatory approvals and customary closing conditions.

McKesson on Jan. 1 marked a major milestone in separating MMS by completing key transition service agreements.

• Related: McKesson on track for IPO of Medical-Surgical business.