Private equity group closes deal to buy Medline for more than $ 30 billion
A group of private equity firms including Blackstone Group Inc.
is on the cusp of a deal to acquire Medline Industries Inc. which would value the medical supply giant at more than $ 30 billion, in one of the largest debt buyouts since the financial crisis, people close to it say folder.
The deal could be done as early as this weekend assuming the talks don’t collapse, the people said. The Blackstone consortium includes Carlyle Group Inc.
and Hellman & Friedman LLC. They beat a competing bid from the private equity arm of Canadian investment giant Brookfield Asset Management Inc.,
Including debt, the deal would be valued at around $ 34 billion, and north of $ 30 billion excluding borrowing, the people said. This could potentially make it the biggest LBO ever in healthcare.
Based in Northfield, Illinois, the family-owned Medline is a little-known but major player in the medical equipment industry. It manufactures and distributes equipment and supplies used in hospitals, surgical centers, acute care and other medical facilities in more than 125 countries. It has an annual turnover of around $ 17.5 billion, according to its website.
Brothers James and Jon Mills founded the company in 1966 and went public in 1972. The brothers bought back the shares five years later. James’ son Charlie has been the CEO of Medline since 1997.
The family will remain the largest shareholder in the company after the takeover and the management team will remain in place, some people said.
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