The IPOX® Watch - Pre-IPO Analysis: Medline
COMPANY DESCRIPTION
Founded in 1966 by Jon and Jim Mills, originally as a textile manufacturer, Medline Industries, LP is a vertically integrated supplier of medical and surgical equipment headquartered in Northfield, Illinois. It provides medical products, supply chain services, and clinical solutions to healthcare institutions and individuals across sectors such as consumer products, emergency medical services, surgery centers, clinical laboratories and more. Additionally, Medline provides Continuing Education (CE) credits through Medline University.
BUSINESS MODEL
As one of the world’s largest private medical supply distributors, Medline has a portfolio of over 335,000 products. 190,000, and more patent pending, are Medline-branded. With products such as catheter kits and compression devices, medical-surgical supplies account for 45% of revenue and 20% of market share according to NextSprints. Medline reported $25.5 billion in net sales for 2024.
IPO
Medline Industries plans to launch its second IPO in 2025, aiming to raise $5 billion at a $50 billion valuation, according to U.S. News. The company first went public in 1972 with 150,000 shares at $13 but was taken private in 1977 when the Mills brothers bought it back. In 2021, a private equity consortium led by Blackstone, Carlyle, and Hellman & Friedman acquired a 79% stake in Medline for $34 billion. The Mills family led the sale to promote the company’s growth and provide liquidity for family-held assets.
ACQUISITIONS
Medline Industries has numerous acquisitions to operate in a global scale. In total Medline has acquired 9 companies. The most recent being AG CUFFILL and United Medco in March 8, 2024 and January 12, 2024 respectively. Additionally, Medline purchased Ecolab’s Global Surgical Solutions for $950 million in April, 2024.
ESG RISKS
Medline faces several ESG risks. The company has dealt with product safety issues, including the 2024 recall of 1.5 million adult bed rails following two reported deaths. Separately, it distributed plastic syringes manufactured by Jiangsu Shenli Medical that lacked FDA certification and had performance defects. Its global supply chain also raises concerns related to human rights and tariffs. In 2019, Medline was involved in a class action lawsuit over ethylene oxide emissions from its Waukegan facility. After its insurers denied coverage, the company became solely responsible for injury claims. Additionally, Medline has faced multiple False Claims Act cases, including an $85 million settlement in 2007 over kickback and bribe allegations to healthcare providers.
INNOVATIONS
In 2024, Medline stated it will be cooperating with Microsoft to create an AI supply chain solution called MpowerTM. MpowerTM will be used to predict recommendations to professionals, avoid expensive technology platforms, and improve overall employee experience. Through collecting data, Medline hopes it can streamline decision making and ultimately its complex supply chain to better manage inventory and the healthcare industry.
