The acquisition of Medline Industries Inc. that was agreed to over the weekend, the biggest leveraged buyout in more than a decade, serves as the clearest sign yet that the appetite for megadeals is rising as the pandemic eases and private-equity firms look to deploy mountains of cash.
Blackstone Group Inc., Carlyle Group Inc. and Hellman & Friedman LLC said Saturday they struck a buyout deal that, according to people familiar with the matter, values the closely held medical-supply company at more than $30 billion—or around $34 billion including debt.
That makes it the largest leveraged buyout since the 2007-08 financial crisis.
In the U.S., $1.24 trillion of deals have been reached in 2021, up more than fourfold compared with the same period last year when lockdowns crimped economic activity and acquisition volume, according to Dealogic.
But private-equity firms, tasked with putting over a trillion dollars to work, had largely shied away from the biggest deals—until now.
Medline Industries Inc, Blackstone Group Inc, Carlyle Group Inc, Friedman, Discovery Inc, T Inc, Warner Media, Canadian National Railway Co, Kansas City Southern