McKesson Corporation (NYSE: MCK) announced it entered into an agreement with funds managed by Apollo Global Management affiliates for Apollo to acquire a minority ownership interest in McKesson's Medical-Surgical Solutions business.

Apollo will invest $1.25 billion in convertible preferred equity to acquire approximately 13% of the medical-surgical unit. The transaction values the division at approximately $13 billion total enterprise valuation, according to the company's statement.

McKesson will retain operating control and majority ownership of the Medical-Surgical Solutions business and will continue to consolidate the results for financial reporting purposes. The healthcare services company said the transaction represents a step in its strategy to separate the division in preparation for a planned initial public offering.

"This transaction marks a key milestone in McKesson's planned separation of MMS," said Brian Tyler, chief executive officer of McKesson. "We are pleased to welcome Apollo as an important strategic and financial partner."

Apollo Partner Maxwell David and Managing Director Jeff Armstrong said the Medical-Surgical Solutions business is positioned in healthcare supply chain operations across non-acute care settings. "We believe the business is well positioned for continued growth," they stated.

The transaction requires regulatory approvals and customary closing conditions. McKesson has not specified a timeline for the planned initial public offering of the Medical-Surgical Solutions unit.

Irving, Texas-based McKesson operates as a healthcare services company, partnering with pharmaceutical companies, care providers, and pharmacies. Apollo manages approximately $938 billion in assets as of December 31, 2025, according to the announcement.