Group Including Blackstone Nears Deal to Buy Medline for Over $30 Billion
June 05 2021 - 12:57PM
Dow Jones News
By Cara Lombardo and Miriam Gottfried
A group of private-equity firms including Blackstone Group Inc.
is nearing a deal to acquire Medline Industries Inc. that would
value the medical-supply giant at more than $30 billion, in one of
the largest leveraged buyouts since the financial crisis, according
to people familiar with the matter.
The deal could come together as soon as this weekend assuming
the talks don't fall apart, the people said. The Blackstone
consortium includes Carlyle Group Inc. and Hellman & Friedman
LLC. They beat out a rival bid from the private-equity arm of
Canadian investing giant Brookfield Asset Management Inc., the
people said.
Including debt, the transaction would be valued at about $34
billion, and north of $30 billion excluding borrowings, the people
said. That could potentially make it the largest healthcare LBO
ever.
Based in Northfield, Ill., family-owned Medline is a
little-known but a major player in the field of medical equipment.
It manufactures and distributes equipment and supplies used in
hospitals, surgery centers, acute-care and other medical facilities
in over 125 countries. It has some $17.5 billion in annual sales,
according to its website.
Brothers James and Jon Mills founded the company in 1966, taking
it public in 1972. The brothers bought back the shares five years
later. James's son Charlie has been Medline's CEO since 1997.
The family will remain the single largest shareholder in the
company after the buyout and the management team will remain in
place, some of the people said.
Write to Cara Lombardo at cara.lombardo@wsj.com and Miriam
Gottfried at Miriam.Gottfried@wsj.com
(END) Dow Jones Newswires
June 05, 2021 12:48 ET (16:48 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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