Key Takeaways
- • Blackstone, Carlyle, and Hellman & Friedman have agreed to acquire Medline Industries for more than $30 billion, with the total transaction valued at $34 billion including debt, representing the largest leveraged buyout in a decade.
- • The consortium is providing a $17 billion equity check, with Singapore's sovereign wealth fund GIC also investing as part of the deal; the acquisition beats rival bids from Bain Capital and Brookfield Asset Management.
- • Medline, the largest privately held manufacturer and distributor of healthcare supplies in the U.S., reported 2020 revenue of $17.5 billion and will remain privately held post-transaction, with the Mills family retaining status as largest single shareholder.
- • The company's senior management team—including CEO Charlie Mills, President Andy Mills, and COO Jim Abrams—will remain unchanged following deal closure, expected in late 2021.
- • Medline's sale process began in April 2021, initially attracting at least eight bidders before narrowing to three final contenders by June.
Summary
A consortium of three major private equity firms—Blackstone, Carlyle, and Hellman & Friedman—has agreed to acquire Medline Industries in a landmark transaction valued at $34 billion including debt, marking the largest leveraged buyout in a decade. The deal structure includes a $17 billion equity commitment from the PE group, with Singapore's Government of Singapore Investment Corporation (GIC) also participating. The transaction price exceeds $30 billion on an equity basis, positioning this as a significant capital deployment in the healthcare services sector.
Medline, based in Northfield, Illinois, is the largest privately held manufacturer and distributor of healthcare supplies in the United States, including products such as gowns, wheelchairs, and exam tables. The company generated $17.5 billion in revenue during 2020, underscoring its substantial market position. The acquisition process commenced in April 2021, initially drawing interest from at least eight prospective bidders. By June, the field had consolidated to three finalists: the Blackstone-led consortium, a group led by Bain Capital, and Canadian alternative asset manager Brookfield Asset Management. The Blackstone group ultimately prevailed in securing the asset.
The transaction preserves continuity in ownership and management. Founded by the Mills family in 1966, Medline will remain privately held following deal closure. The Mills family will retain its position as the company's largest single shareholder. No changes will be made to the senior management team, which comprises CEO Charlie Mills, President Andy Mills, and Chief Operating Officer Jim Abrams. The deal is anticipated to close in late 2021. This outcome reflects a broader strategic preference among large healthcare supply distributors to maintain operational independence while accessing growth capital and operational expertise from leading PE investors.
Medline, based in Northfield, Illinois, is the largest privately held manufacturer and distributor of healthcare supplies in the United States, including products such as gowns, wheelchairs, and exam tables. The company generated $17.5 billion in revenue during 2020, underscoring its substantial market position. The acquisition process commenced in April 2021, initially drawing interest from at least eight prospective bidders. By June, the field had consolidated to three finalists: the Blackstone-led consortium, a group led by Bain Capital, and Canadian alternative asset manager Brookfield Asset Management. The Blackstone group ultimately prevailed in securing the asset.
The transaction preserves continuity in ownership and management. Founded by the Mills family in 1966, Medline will remain privately held following deal closure. The Mills family will retain its position as the company's largest single shareholder. No changes will be made to the senior management team, which comprises CEO Charlie Mills, President Andy Mills, and Chief Operating Officer Jim Abrams. The deal is anticipated to close in late 2021. This outcome reflects a broader strategic preference among large healthcare supply distributors to maintain operational independence while accessing growth capital and operational expertise from leading PE investors.
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