Medline Inc. IPO: A Complete and Expanded Breakdown of the MDLN Offering

Adam Mitchell
21 hours ago
5 min read

Medline Inc., a leading manufacturer and distributor of medical surgical products and supply chain solutions, submitted an amended S-1 filing on December 8, 2025. The company plans to list on Nasdaq under the ticker MDLN and offer 179 million Class A shares at an expected range of 26 to 30 dollars per share. The scale of Medline's distribution network, its vertically integrated model, and its consistent growth track record make this IPO one of the most important healthcare listings in recent memory.

Below is a detailed breakdown of Medline's operational footprint, financial trajectory, investor structure, offering details, and strategic outlook.

Company Operations

Medline reports that it is the largest provider of med surg products and supply chain solutions across all points of care, supported by a product catalog of approximately 335,000 items.

Product Segments

Medline operates through two primary segments:

Medline Brand Offers roughly 190,000 branded products, including items manufactured across 33 facilities and those sourced from over 500 global partners.
Supply Chain Solutions Provides approximately 145,000 third party products alongside consulting, warehouse management, logistics optimization, route planning, and inventory rationalization services. The company partners with more than 1,250 third party suppliers in this segment.

Logistics and Distribution Network

Medline's distribution footprint includes:

69 global distribution centers
Over 29 million square feet of warehouse space
More than 2,000 trucks in the company's MedTrans fleet
Next day delivery capability for 95 percent of U.S. customers

This fully integrated model is a core differentiator that allows Medline to serve large and complex customers, drive cost efficiencies, and sustain recurring revenue.

Prime Vendor Model

A major driver of customer retention is Medline's Prime Vendor program. These long term agreements position Medline as the primary consolidated logistics partner for healthcare organizations. Prime Vendor arrangements typically run for five years and provide visibility into customer demand while creating a flywheel effect: increased Medline Brand adoption leads to greater scale, which then allows cost reinvestment back into customers.

Manufacturing and Quality

Medline manufactures about one third of its products, supported by a quality control organization of over 2,400 employees. The company reports a 99.99 percent complaint free rate, underscoring its emphasis on quality assurance.

Innovation and M&A

Medline launched 268 new products over the last three years and continues to expand through acquisitions. Recent deals noted in the filing include:

A portion of Ecolab's global surgical solutions business, including Microtek
Sinclair Dental, expanding Canadian distribution reach

Historical Financial Performance

Medline has grown its net sales every year since its founding, with:

An 18 percent CAGR since inception
A 14 percent CAGR over the last 10 years
90 percent of growth over that period being organic
Strong performance in downturns, such as 17 percent net sales growth in 2008 to 2009 and 11 percent CAGR during the 2020 to 2022 pandemic period

Full Year 2024 Results

For the year ended December 31, 2024, Medline reported:

Net sales: 25.5 billion dollars
Net income: 1.2 billion dollars
Adjusted EBITDA: 3.4 billion dollars
Net income margin: 4.7 percent
Adjusted EBITDA margin: 13.2 percent

Breakdown by segment:

Medline Brand

49.1 percent of net sales
83.5 percent of segment Adjusted EBITDA

Supply Chain Solutions

50.9 percent of net sales
16.5 percent of segment Adjusted EBITDA

Nine Months Ended September 27, 2025

Medline generated:

Net sales: 20.6 billion dollars
Net income: 1.0 billion dollars
Adjusted EBITDA: 2.7 billion dollars
Adjusted EBITDA margin: 12.9 percent

Segment Performance Details

Medline Brand (9M 2025)

Net sales increased 8.8 percent to 10.0 billion dollars
Growth driven by Prime Vendor volume and acquisitions
Adjusted EBITDA rose to 2.541 billion dollars
Margin compression driven by tariffs and product cost inflation

Supply Chain Solutions (9M 2025)

Net sales increased 11.6 percent to 10.648 billion dollars
Adjusted EBITDA reached 588 million dollars
Margin improved to 5.5 percent due to operating leverage

Growth Outlook and Projected Financial Drivers

While the S 1 does not include explicit numerical projections, management outlines several drivers of future growth:

Increased Healthcare Utilization

Higher patient volumes and expanded care settings are expected to increase demand.

Expansion of Prime Vendor Contracts

Medline plans to add new Prime Vendor relationships and deepen existing ones.

Brand Conversion Opportunity

Medline identified a 4 billion dollar pool of Supply Chain Solutions product sales that could be converted to Medline Brand equivalents. If fully converted, incremental gross profit could reach 1 billion dollars, though this is not immediately achievable.

International Growth

The company intends to scale its presence outside the United States.

Ongoing M&A

Management expects continued strategic acquisitions to support product expansion and supply chain differentiation.

Supply Chain Technology Enhancements

A 2024 partnership with Microsoft aims to improve inventory management through AI generated insights.

Ownership, Current Investors, and New Investor Participation

Pre IPO Ownership

Medline Holdings LP is controlled by:

Members of the Mills Family through Mozart HoldCo
Investment funds associated with Hellman & Friedman
Investment funds managed by Blackstone
Carlyle and GIC also have ownership stakes via private investment consortiums from 2021

Joining Investors (Non Binding Commitments)

Medline disclosed significant non binding indications of interest:

Cornerstone Investors

Up to 2.35 billion dollars in Class A shares from:

Baillie Gifford
Capital Research Global Investors
Morgan Stanley IM (Counterpoint Global)
Durable Capital
GIC
Janus Henderson
Viking Global
WCM Investment Management

These shares will not be subject to lock up restrictions.

Mills Family Participation

Up to 250 million dollars in Class A shares, subject to lock up.

Underwriter Syndicate

Lead bookrunners include:

Goldman Sachs
Morgan Stanley
BofA Securities
J.P. Morgan

More than 30 firms participate as co managers, reflecting the scale of the deal.

IPO Structure: Pricing, Shares, and Use of Proceeds

Shares Offered

179,000,000 Class A shares
Additional 26,850,000 shares available to underwriters via 30 day option

Expected Price Range

26 to 30 dollars per share.

Use of Proceeds

Proceeds will be used to:

Purchase newly issued Common Units from Medline Holdings LP
Enable the repayment of debt
Pay offering expenses
Support general corporate purposes

Competitive Landscape

Medline operates in a market with both product manufacturers and third party distributors. The company states that competitors often lack Medline's integrated scale, making Medline's combined manufacturing, logistics, and distribution model a competitive advantage.

Final Notes

Medline enters the public markets with a deep operational infrastructure, a long history of financial stability, and a differentiated position in the healthcare supply chain. The company's historical performance, multi channel growth strategy, and strong investor interest position it as one of the most notable IPOs anticipated in 2025. Prospective investors should closely review risk factors and financial statements to understand the full scope of the offering.

FAQs

What is Medline's core business?

Medline manufactures, sources, and distributes medical surgical products and provides supply chain optimization services to healthcare providers.

How large is Medline?

For 2024, Medline reported 25.5 billion dollars in net sales and operates 69 distribution centers and 33 manufacturing facilities.

What are its primary business segments?

Medline Brand and Supply Chain Solutions.

How profitable is Medline?

Net income margins have remained around 4.7 percent, and Adjusted EBITDA margins between 12.9 percent and 13.2 percent in recent reporting periods.

Who are the major investors in the IPO?

Cornerstone investors with 2.35 billion dollars in indicated interest and the Mills Family with 250 million dollars in indicated interest.

Will the cornerstone investors have lock up restrictions?

No. Their indicated share purchases will not be subject to lock up agreements.

Where will Medline trade?

Nasdaq, ticker symbol MDLN.

How will the proceeds be used?

To acquire units from Medline Holdings LP, repay debt, and cover company level expenses.

Financial Disclaimer

This article is for informational purposes only and does not constitute investment advice, financial advice, or an offer to buy or sell securities. Readers should perform their own analysis or consult with a licensed financial professional before making investment decisions.