UPDATE1-HGI changes hands in $850 mln private equity deal

* Latest in line of private equity deals

* Asset changing hands between private equity firms

NEW YORK, July 27 (Reuters) - Private equity firms Clayton, Dubilier & Rice and Goldman Sachs' (GS.N) unit GS Capital Partners are to buy medical products provider HGI Holdings from another buyout firm, the companies said on Tuesday.

The deal is worth about $850 million, a source familiar with the situation said.

The firms are buying HGI from rival private equity firm Jordan Company, they said in a press release.

HGI provides mail-order specialty medical products that serve chronic disease patients.

Private equity deals have spiked in recent months with a spate of assets changing hands as funds face pressure to spend capital raised in the boom and are nervous about the threat of higher taxes.

Firms have incentives both to buy and sell right now. Pressure is on to invest billions of dollars raised in 2006-2008 as the end of those funds' investment periods approach, while funds are also keen to sell or take public existing investments to reward under-pressure investors. For more details [nN19201456] (Editing by Maureen Bavdek)