Market appetite for megadeals may be returning as indicated by the $30-billion Medline Industries Inc. acquisition deal, the WSJ reported.
- The Blackstone Group Inc., Carlyle Group Inc., and Hellman & Friedman LLC over the weekend inked a deal to acquire Medline for $30 billion or around $34 billion including debt. This is the biggest leveraged buyout since the financial crisis in 2008.
- Indicators of renewed taste for large LBOs came as firms approached courted Toshiba Corp. and Royal KPN NV but deals have yet to be finalized. Buyout firms now have over $1.6 trillion of unspent cash.
- Goldman Sachs Group Inc. Co-Chairman Dusty Philip said the acquisition could open up the floodgates as conditions are ideal with low interest rates, aggressive financial markets, and unspent cash. Only 10 deals worth at least $10 billion were inked from 2007 before Medline.
The Mills family will remain the single largest shareholder in Medline post-transaction. BX is up 0.97%.