A consortium of private equity groups, including Black stone People familiar with the matter said that Carlyle and Carlyle are about to acquire medical supply group Medline for approximately US$34 billion (including debt), which will be the largest acquisition this year.
A person with direct knowledge of the matter said that this group of financial investors is expected to announce a deal soon.
The transaction will be the largest acquisition involving a private equity investor club since the 2007 financial crisis. After acquiring TXU Corporation, the US energy group for US$44 billion in 2007, this will be one of the largest private equity transactions in history.
The Blackstone Group also cooperated with Hellman & Friedman in this transaction, defeating other consortiums of acquisition groups, including Bain Capital and CVC, and another consortium led by Brookfield.
Medline was founded in 1966 by Jim and John Mills and is one of the largest manufacturers of medical supplies. The family business is now run by Charles Mills.
In 2018, Blackstone reached the largest deal since the financial crisis, raising $17.3 billion and acquiring a controlling stake in Thomson Reuters’ financial terminal and data business. The Canadian Pension Plan Investment Board and the Singapore National Fund GIC provided funding for the transaction.
Club transactions were popular in the years before the financial crisis because they allowed Private Equity Group Get access to more and bigger deals. As credit dried up, they ended abruptly after the crisis, but recently gained traction.
The Wall Street Journal first reported the potential transaction.