We are advising McKesson on the transaction

Davis Polk is advising McKesson Corporation on its sale of a minority ownership interest in its Medical-Surgical Solutions (MMS) business to funds managed by affiliates of Apollo. Apollo will invest $1.25 billion in convertible preferred equity to acquire an approximately 13% stake in MMS, implying a total enterprise value of approximately $13 billion. McKesson will retain operating control and majority ownership of MMS. This transaction represents a meaningful milestone as McKesson executes its separation strategy of MMS in preparation of a planned initial public offering. The sale is subject to customary closing conditions and regulatory approvals.

McKesson is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. McKesson’s teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments and others to deliver insights, products and services to help make quality care more accessible and affordable.Apollo is a high-growth, global alternative asset manager that seeks to provide its clients with excess return at every point along the risk-reward spectrum from investment grade credit to private equity. As of December 31, 2025, Apollo had approximately $938 billion of assets under management.

The Davis Polk corporate team includes partners Alan F. Denenberg and Michael Diz, counsel Jason Bassetti and associates Rong (Fiona) Huang and Brigitte Desnoes. Partner Patrick E. Sigmon and counsel Liang Zhang are providing tax advice. Partner Adam Kaminsky is providing executive compensation advice. Partner Frank Azzopardi is providing intellectual property advice. Counsel Suzanne Munck af Rosenschold is providing antitrust and competition advice. Members of the Davis Polk team are based in the Northern California, New York and Washington DC offices.

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