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Medline (MDLN) is going public this weekWhile tech investors have been glued to AI listings, the largest deal of 2025 comes from a very different sector: Healthcare Supply. Medline is the plumbing of the US healthcare system. If you’ve ever been to a hospital, you’ve used their products, from surgical gowns and exam gloves to anesthesia kits and wheelchairs. In 2021, Medline was taken private in a massive $34 billion leveraged buyout (LBO) by Blackstone, Carlyle, and Hellman & Friedman. It was one of the largest LBOs since the 2008 financial crisis. Now, just four years later, the private equity giants are bringing it back to the Nasdaq. Medline is targeting a $55 billion valuation, making it the largest IPO since 2021. I went through the 300+ pages of Medline’s S-1 so you don’t have to. Today at a glance:
1. OverviewMedline has been the largest privately held manufacturer and distributor of medical supplies in the United States. Founded in 1966 by the Mills family, the company traces its roots to 1910, when A.L. Mills began making butcher aprons for the Chicago stockyards. He soon realized that surgeons needed aprons too, and a healthcare dynasty was born. For decades, Medline operated as a family business, compounding quietly. Today, it serves the entire continuum of care: hospitals, surgery centers, nursing homes, and physician offices.
The “One-Stop Shop”Let’s capture Medline’s scale in a few key numbers:
The 2021 LBO ContextWhy are we seeing an IPO now? In 2021, the Mills family sold a majority stake to private equity giants. The goal was to accelerate global expansion and invest in infrastructure without the quarterly pressure of public markets. Now, these PE firms are looking for an exit (or at least liquidity), and the S-1 shows that their bet has paid off: Medline has grown revenue by roughly $5 billion since the buyout.
2. Business ModelMedline operates a vertically integrated model that blends Manufacturing and Distribution. Most competitors do one or the other.
Medline does both. They use their distribution network to get in the door with hospitals, then upsell them on their own high-margin private-label products.
They report in two main segments: 🏥 1. Medline Brand (~49% of Sales)This is the profit engine. It includes products manufactured or sourced by Medline (surgical kits, PPE, sterile drapes).
🚚 2. Supply Chain Solutions (~51% of Sales)This is the logistics arm. They distribute products from other manufacturers alongside their own.
The FlywheelThe business thrives on a simple but powerful cycle of land and expand:
This lock-in is incredible. Medline reports a 98% retention rate for its Prime Vendor customers over the last 5 years. Medline Brand conversion steadily increases over the tenure of a contract.
3. Financial HighlightsLet’s turn to the financials and where the money flows... Subscribe to How They Make Money to unlock the rest.Become a paying subscriber of How They Make Money to get access to this post and other subscriber-only content. A subscription gets you:
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Tuesday, December 16, 2025
🏥 The Biggest IPO Since 2021
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