MCK · 10-Q · 2026Q2 · Full report

Medical-Surgical Separation

MCKESSON CORP · 2026-08-05 · Importance 53 · Surprise 60 · In source text

On June 1, 2026, Apollo Global Management affiliates invested approximately $1.25 billion in convertible preferred equity of Medical-Surgical Solutions for an approximately minority ownership interest classified as redeemable noncontrolling interest. On June 2, 2025, McKesson acquired a controlling interest in Community Oncology Revitalization Enterprise Ventures, LLC for $2.5 billion in cash, with the business included in Oncology & Multispecialty. Core Ventures had $2.310 billion of acquired finite-lived intangible assets and $3.181 billion of total consideration, including redeemable noncontrolling interests. The Apollo transaction provided capital at the Medical-Surgical Solutions business level while preserving McKesson’s consolidated control.

Key facts

• On June 1, 2026, Apollo Funds invested approximately $1.25 billion in convertible preferred equity of the Medical-Surgical Solutions business to acquire an approximately 13% minority ownership interest. source
• On June 1, 2026, Apollo Funds invested approximately $1.25 billion in convertible preferred equity of the Medical-Surgical Solutions business to acquire an approximately 13% interest in Medical-Surgical Solutions. source
• Sale of noncontrolling interest in Medical-Surgical Solutions, net proceeds: $1,238 million (cash flows) source
• The Company recognized a redeemable noncontrolling interest associated with the divested portion of the Medical‑Surgical Solutions segment and retains operating control and majority ownership while continuing to consolidate the segment. source
• Segment operating profit margin for Medical-Surgical Solutions for the three months ended June 30, 2026: 4.33%; for the three months ended June 30, 2025: 8.18%. source
• The increase in net income attributable to noncontrolling interests was primarily driven by higher volumes in the ClarusONE joint venture and contributions from Core Ventures; charges of $293 million for Medical-Surgical Solutions and $81 million for Core Ventures were recorded to remeasure redeemable noncontrolling interests to redemption value for the three months ended June 30, 2026. source
• Corporate expenses, net included net charges of $23 million for the three months ended June 30, 2026 related to the planned separation of the Medical-Surgical Solutions business. source
• Other segment expense, net for Medical-Surgical Solutions includes net charges of $45 million for the three months ended June 30, 2026 related to the planned separation of the Medical-Surgical Solutions business. source

Impact estimates