McKesson Corporation (NYSE: MCK) completed a $1.25 billion investment from funds managed by Apollo affiliates in its Medical-Surgical Solutions business. The transaction gives Apollo Funds approximately 13% ownership in the unit, which received a $13 billion enterprise valuation.

The investment consists of convertible preferred equity in Medical-Surgical Solutions. McKesson retains operating control and majority ownership of the business and will continue to consolidate its financial results for reporting purposes.

The transaction represents progress toward McKesson's plan to separate Medical-Surgical Solutions into an independent, publicly traded company. The healthcare services company initially announced the Apollo investment agreement on June 1, 2026.

Apollo manages approximately $1.03 trillion in assets as of March 31, 2026. The firm operates as an alternative asset manager across investment grade credit to private equity investments.

McKesson noted in the announcement that the planned separation and initial public offering of Medical-Surgical Solutions remains subject to various conditions and may not occur on the currently anticipated timeline.