Irving-based McKesson Corporation (NYSE: MCK) said Tuesday it has agreed to sell a minority stake in its Medical-Surgical Solutions business to funds managed by affiliates of Apollo, a step forward in its plan to carve out MMS as an independent, publicly traded company.

Apollo Funds will invest $1.25 billion in convertible preferred equity for an approximately 13% stake in MMS, valuing the unit at about $13 billion, McKesson announced. The Irving-headquartered healthcare services giant—DFW’s largest public company—will retain operating control and majority ownership and continue to consolidate MMS results for financial reporting.

Brian Tyler, chief executive officer of McKesson, called Apollo a strategic and financial partner as the company prepares MMS for a public listing. “Apollo’s experience in supporting complex carve-out and public market transactions will be additive as we position MMS for success,” he said.

In a statement, Tyler said the two companies will execute the separation to maximize shareholder value and establish a “well-capitalized, world-class” medical surgical supply and solutions company.

Apollo, a global alternative asset manager with approximately $938 billion in assets under management as of Dec. 31, 2025, said MMS has a strong position in the market and plays a key role in healthcare supply chains outside hospital settings. “We believe the business is well positioned for continued growth,” Apollo Partner Maxwell David and Managing Director Jeff Armstrong said in a joint statement.

McKesson signaled its intent to separate MMS in a May 2025 strategic portfolio update. Tyler said then that the move was intended to unlock value for both McKesson and Medical-Surgical Solutions as each focuses on growth in its respective market. The separation, the company said, would let McKesson focus on high-growth, high-margin opportunities such as cancer drugs and specialty medications in line with its long-term enterprise strategies.

On Jan. 1, McKesson reached “a major milestone in the separation journey with transition service agreements now in place across the enterprise,” Tyler told investors on the company’s fiscal third-quarter earnings call Feb. 4. The IPO remained on track for the second half of calendar 2027, he said, “subject, of course, to market conditions and customary regulatory approvals.”

MMS posted $3 billion in revenue in McKesson’s fiscal third quarter ended Dec. 31, a 1% increase driven by higher volumes of specialty pharmaceuticals, according to McKesson. Segment operating profit fell 10% to $265 million, which the company attributed to “lower volumes across physician office settings and lower incidence of illness for the season.”

Apollo, a global alternative asset manager, reported approximately $938 billion of assets under management as of Dec. 31, 2025, according to its disclosure.

McKesson has emphasized a track record of complex separations and divestitures, including its 2020 exit from Change Healthcare, reported HME News in February. According to the publication, Britt Vitalone, McKesson executive vice president and CFO, said those portfolio actions have “streamlined the company, sharpened strategy and created significant shareholder value, including more than doubling returns on invested capital.”

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