Jordan Company exits medical supplier for $850m

GS Capital Partners and Clayton Dubilier & Rice are teaming up to buy Harrington Holdings from The Jordan Company, which first invested in the company in 2007.

The Jordan Company has agreed to sell Harrington Holdings, a mail order distributor of medical supplies, for $850 million to GS Capital Partners and Clayton Dubilier & Rice.

Jordan first invested in HGI in 2007 for an undisclosed amount. The company operates through two divisions – Edgepark Medical Supplies and Independence Medical.

Paul Pressler of CD&R will be the company’s chairman. Pressler, former president of Gap, Disneyland and The Disney Stores, joined CD&R in an advisory role in July 2009.

CD&R invested in another medical supply company, VWR International, in 2004, acquiring it from Merck for $1.65 billion, including about $420 million of equity. The firm sold the company in 2007 to Madison Dearborn for between $3.5 billion and $4 billion.

Edgepark contracts directly with more than 600 managed care organisations to provide direct-to-consumer home delivery of products to about 300,000 patients.

Financing for the deal will be provided by Goldman Sachs, Jefferies, Morgan Stanley and Blackstone affiliate GSO.