Clayton Dubilier & Rice and GS Capital Partners are buying HGI Holdings for $850 million, The Wall Street Journal reports. The buy-out groups are acquiring the home health-care products distributor from Jordan Company. The deal is expected to close in fourth quarter of 2010.

Debt financing for the takeover will be provided by the associates of Goldman Sachs, Jefferies and Morgan Stanley Senior Funding and funds run by GSO Capital Partners. Jefferies has been hired as financial advisor to HGI.

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