The Strategist

US largest private healthcare products manufacturer sold for $34B

06/07/2021 - 03:53

The largest privately held medical device manufacturer in the US is to change ownership. Medline, which has become one of the most important suppliers of antiseptics, masks, wipes and even toilet paper since the pandemic began, is being bought by a consortium of investment funds for $34bn. This is the most expensive deal this year and one of the largest private equity purchases in 14 years.
A consortium of investment funds, including Blackstone, Carlyle and Hellman & Friedman, has agreed to buy US medical products manufacturer Medline for $34 billion, the Financial Times reported, citing a company statement.

According to the publication, the purchase of Medline is "the largest company buyout" this year and one of the most expensive private equity deals since 2007, when a group of investors bought US energy group TXU Corporation for $44bn.

Other consortia of investors wanted to buy Medline, including a group that included investment firms Bain Capital and CVC, as well as a consortium led by Brookfield, writes the FT. Such "club deals" were especially popular before the financial crisis of 2008, came to naught after it, and now being activated again, the publication notes.

Medline is a little-known, but major player in the medical goods industry, writes The Wall Street Journal. The company makes equipment and supplies (masks, surgical gowns, napkins, biohazard bags, antiseptics) used in hospitals, surgery centres, emergency rooms and other medical facilities in more than 125 countries.