Skip to content
 
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(CNN)   Private equity group buys major medical supply company. This will surely improve quality, lower costs and improve employee quality of life. Until the company is dismembered and driven into bankruptcy that is   (cnn.com) divider line
    More: Sad, Private equity firm, Medline's entire senior management team, infrastructure investments, group of private equity firms, Private equity firms, Blackstone Group, Kohlberg Kravis Roberts, Bain Capital  
•       •       •

840 clicks; posted to Business » on 06 Jun 2021 at 1:05 AM (2 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



16 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2021-06-06 3:35:57 AM  
"Blackstone Group (BX), Carlyle Group (CG) and Hellman & Friedman..." These companies certainly have a history of the long term interests of their acquisitions.
 
2021-06-06 8:42:26 AM  
I recently learned that some people confuse private equity with hedge funds. So when you see some of the talk surrounding GameStop, people are thinking that they're preventing hedge funds from shutting down GameStop.
 
2021-06-06 8:51:57 AM  

Ragin' Asian: "Blackstone Group (BX), Carlyle Group (CG) and Hellman & Friedman..." These companies certainly have a history of the long term interests of their acquisitions.


The number of family owned companies with assets to suck dry is getting smaller.
 
2021-06-06 9:04:23 AM  
2nd year business school - first day of class.
Two guys are whispering in the back - they realize they have signed up for a class about industrial production:

1st. guy: "Things? I don't want to make things! I want to make MONEY!!"

2nd. guy: "I know how we can make some money! Let's sue the school!"

They go on to be CEOs.
 
2021-06-06 10:32:21 AM  
SOP is to sell everything valuable and abandon the rest. Employees are not considered valuable. That's why this country is doomed.
 
2021-06-06 11:36:56 AM  
The Cliff's notes: this is not a LBO.

A few PE firms are giving the company (e.g. the family) a whole bunch of cash, that the company intends to reinvest for expansion. None of the PE firms will have a majority stake, so there is little chance of raiding the pension fund, selling off everything of value, etc. PE is making a bet on the success of the company.

In a few years, the company will IPO, and become a publicly traded company. PE will sell their shares and make a nice profit. The family will make a nice penny too, as will any employees on an LTI plan.
 
2021-06-06 11:42:00 AM  
Hey, locusts gotta eat, too.
 
2021-06-06 11:43:13 AM  

H31N0US: The Cliff's notes: this is not a LBO.


Yet.
 
2021-06-06 12:07:06 PM  

H31N0US: The Cliff's notes: this is not a LBO.


So did the hooker with the heart of gold get the corporate raider with daddy issues to help the family owned company grow and expand rather than wreck it?

/walkin down the street
//the kind I like to meet
///three
 
2021-06-06 12:38:53 PM  
Get ready for supplemental insurance for Band-Aids, slings, oxygen, and pretty much everything else.  How else can you afford the thousands of dollars per [item], even though they cost a few pennies to make in China and ship to your pharmacy.  We might need to add in a VAT in these expensive items, and grant exemptions based on your wage income.  Capital gains will be exempt.  Then we need PCPs to approve the band-aid purchase like a prescription.  Can't have healthy people using Band-Aids.
/Insane
 
2021-06-06 1:51:22 PM  
'Murica.
 
2021-06-06 2:16:22 PM  
We almost exclusively use medline for everything. I wonder if we're going to start being tight asses and scan to charge the patients for every little thing like HCA does.

/nonprofit religious hospital so probably not
 
2021-06-06 5:13:58 PM  
Actually kind of surprised that Cardinal Health isn't involved. They like to buy up competition.
 
2021-06-06 9:24:20 PM  

H31N0US: The Cliff's notes: this is not a LBO.

A few PE firms are giving the company (e.g. the family) a whole bunch of cash, that the company intends to reinvest for expansion. None of the PE firms will have a majority stake, so there is little chance of raiding the pension fund, selling off everything of value, etc. PE is making a bet on the success of the company.

In a few years, the company will IPO, and become a publicly traded company. PE will sell their shares and make a nice profit. The family will make a nice penny too, as will any employees on an LTI plan.


The private equity firms will have a majority stake:
"Funds managed by Blackstone, Carlyle and Hellman & Friedman will take a majority stake in Medline, which is the largest privately held manufacturer and distributor of medical supplies in the U.S., generating sales of $17.5 billion in 2020."

But, the owning family will be the single largest shareholder - a plurality. The PE firms are the majority:
"After the buyout, the Mills family will remain the single largest stockholder in the company and the existing management team will remain in charge: CEO Charlie Mills, President Andy Mills and COO Jim Abrams, who's a member of the family by marriage."

I like your optimism, or perhaps rosy outlook. But these companies have no other raison d' etre than simply to make profit. Literally everything else is ancillary. And they are the majority shareholder.

Being a plurality in the face of a group of major PE firms is... a lion facing a pack of hyenas. It might be big enough to hold them off but unless it's a male in its prime, it's gonna get ate.
 
2021-06-06 9:43:29 PM  
And if you want to understand why PE companies are allowed to operate, follow the money. Check out Blackstone's donor profile, and Carlyle's donor profile. And this almost certainly understates it, with the advent of Dark Money (giving to nonprofits that give to candidates).

The current head of the Federal Reserve is a Carlyle alumnus.
 
2021-06-06 11:11:43 PM  

Russell_Secord: SOP is to sell everything valuable and abandon the rest. Employees are not considered valuable. That's why this country is doomed.


Well, the employees could be made to be quite valuable.  A few tweaks to federal legislation around organ sales and we could have a totally new world where private equity groups really care about keeping the employees of the firms they take over!
 
Displayed 16 of 16 comments

View Voting Results: Smartest and Funniest

This thread is closed to new comments.

Continue Farking




On Twitter


  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.