Family-Owned Medline Gets Big Investment from PE

Blackstone, Carlyle and Hellman & Friedman have agreed to make a majority equity investment in Medline Industries, one of the nation’s largest manufacturers and distributors of healthcare supplies.

Medline offers more than 550,000 medical products to hospitals, extended care facilities, surgery centers, physician offices, home care agencies, and retailers. The company’s products include wound and skincare products, gloves, face masks, isolation gowns, monitors, reusable textiles, durable medical equipment, incontinence products, sterile products, electrosurgical products, and housekeeping supplies.

Medline has more than 28,000 employees worldwide and had revenues in 2020 of $17.5 billion. Industry analysts have estimated Medline’s enterprise value at nearly $34 billion. The company was founded in 1966 by brothers Jim and Jon Mills and is headquartered north of Chicago in Northfield, Illinois.

Following the close of the transaction, Medline will remain a privately held, family-led company with the Mills family remaining as the company’s largest single shareholder.

“The Mills family has built an exceptional business, and we are proud to partner with them and Medline’s management to support the company’s continued strong growth,” said Joe Baratta, the global head of private equity at Blackstone. “Large corporate partnerships with family-led companies are an area where we have deep experience, and we look forward to investing in Medline’s further expansion.”

“Making healthcare run better has been our focus for decades. This investment from some of the world’s most experienced and successful private investment firms will enable us to accelerate that strategy while preserving the family-led culture that is core to our success,” said Charlie Mills, Medline’s chief executive officer.

New York City-based Blackstone (NYSE: BX) invests in private equity, real estate, public debt and equity, non-investment grade credit, real assets, and secondary funds. The firm also provides financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory, and fund placement services.

Carlyle (NASDAQ: CG) invests worldwide in buyouts, growth capital, real estate, and leveraged finance. The firm, with $230 billion of assets under management, has more than 1,800 employees in 29 offices across five continents and is based in Washington DC.

“We are excited to partner with Medline’s impressive management team to accelerate growth through continued execution, innovation, and investment,” said Steve Wise, Carlyle’s global head of healthcare. “With a deep commitment to sustainable value creation, we look forward to leveraging our combined operational capabilities, expansive healthcare network and capital to support organic and inorganic growth initiatives for the company.”

Hellman & Friedman invests from $300 million to $1 billion in companies across a range of industries including software & technology, financial services, healthcare, retail & consumer, and other business services. The firm was founded in 1984 and is headquartered in San Francisco.

“Medline is known for its unwavering commitment to its customers, providing high-quality medical products that are used to treat patients every day,” said Allen Thorpe, a partner at Hellman & Friedman. “We are excited to support that commitment and partner with Medline to continue bringing the broadest and deepest capabilities to the healthcare industry.”

GIC, Singapore’s sovereign wealth fund, is also making an investment in Medline as part of the investor group. GIC was founded in 1981 to manage Singapore’s foreign reserves and to invest in private equity funds as well as directly in companies. GIC is headquartered in Singapore with a network of offices in ten cities worldwide.

Goldman Sachs and BDT & Company are the financial advisors to Medline and the transaction is expected to close during the fourth quarter of 2021.

© 2021 Private Equity Professional | June 8, 2021

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