Blackstone, Carlyle and Hellman & Friedman to Invest in Medline

Carlyle Press Release:

Medline Industries, Inc., the nation's largest privately held manufacturer and distributor of healthcare supplies with 2020 revenue of $17.5 billion, today announced that it has entered into a definitive agreement through which it will receive a majority investment from a partnership comprised of funds managed by Blackstone, Carlyle and Hellman & Friedman. Following the close of the transaction, Medline will remain a privately held, family-led company...Medline will continue to be led by the Mills family, who will remain the largest single shareholder.

Goldman Sachs & Co. LLC acted as lead financial advisor, BDT & Company, LLC acted as financial advisor and Wachtell, Lipton, Rosen & Katz acted as legal advisor to Medline. BoA Securities, Inc., J.P. Morgan, Barclays, Morgan Stanley, and Centerview Partners are acting as financial advisors to Blackstone, Carlyle, and Hellman & Friedman. Simpson Thacher & Bartlett LLP acted as legal advisor to Blackstone, Carlyle, and Hellman & Friedman.

Didn't see a thread on this transaction. Any thoughts/insights from those in the industry?

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Comments (9)

  • Intern in CorpDev
Jun 6, 2021 - 6:11am

According to Bloomberg, "the transaction is valued at more than $30 billion… The deal is worth as much as $34 billion including debt and would include a $17 billion so-called equity check"

Jun 6, 2021 - 6:32am

Healthcare has always been an enticing play for PE firms across the spectrum of fund sizes. Medline is more an actual distributor of basic non-differentiated healthcare supplies but has a ton of shelf-space in the area and therefore is a more predictable business given it likely has a healthy degree of contracted business with pre-written margins making for a very attractive PE opportunity. 

Having been in MF healthcare PE on the life sciences side, I can attest to the fact that growing contracted revenue with govt/large pharmacies was a large driver of our investment thesis for several assets. This is obviously slightly less related in the context of Medline but thought it may be worth mentioning especially since the distro space often times has similar end markets albeit completely different pricing dynamics.

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Jun 10, 2021 - 11:30pm

Interesting - I know absolutely nothing, but my intuition would have said each sponsor would have its own advisor. Aren't they negotiating as much with each other as with Medline?

  • Analyst 1 in IB - Ind
Jun 10, 2021 - 11:34pm

The sponsors act as a consortium so one "entity"

To be honest MFs like Blackstone don't need a financial advisor, everyone's an ex-banker and sophisticated enough to do a transaction without wasting 200 bps on an advisor. They only need the banks for financing. Typically when a large fund has a financial advisor it's to throw the bank a bone for supporting the fund in previous transactions and just outsource some diligence to IB analysts.

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