Abu Dhabi’s ADIA is said to invest $1bn in Medline buyout

Abu Dhabi Investment Authority is planning to join one of the biggest leveraged buyouts of all time by investing about $1bn alongside a consortium acquiring medical supply company Medline Industries, according to people familiar with the matter.

The biggest sovereign wealth fund of Abu Dhabi will back the takeover of Medline by Blackstone Group, Carlyle Group and Hellman & Friedman, the people said, asking not to be identified discussing confidential information.

Singapore’s state-owned investor GIC Pte is also investing in the deal, which values Medline at more than $30bn.

A spokesperson for ADIA confirmed the investment in response to Bloomberg queries.

Medline is the biggest private US manufacturer and distributor of medical supplies like gloves, gowns and exam tables to hospitals and doctor’s offices. The private equity consortium beat out Canadian investment giant Brookfield Asset Management, which was bidding on its own, to acquire the business.

ADIA has been seeking to take advantage of the relationship it enjoys as a backer of some of the world’s larger buyout firms and join in on more deals. Last year, it agreed to invest along with Advent International and Cinven on their $19bn buyout of Thyssenkrupp AG’s elevator unit. The fund was part of a consortium that bought Nestle SA’s $10bn skincare business in 2019.

It’s also ADIA’s second health-care deal in quick succession. In May it took a minority stake in health-care software provider Dedalus Holding from private equity company Ardian.

The sovereign fund has been building out its own team of private equity professionals, which allows it to make more of its own direct investments. This month, it added another senior hire to its in-house data analysis and artificial intelligence team, set up to develop new investment strategies.