Medline, a prominent medical supply company based in Northfield, has taken a significant step towards an initial public offering (IPO) by filing necessary documentation with the U.S. Securities and Exchange Commission (SEC) on Tuesday. While the registration statement does not disclose the number of shares or pricing details, the move indicates the company’s intent to enter public markets.
According to Bloomberg, Medline is aiming for an IPO that could raise around $5 billion and potentially value the company at approximately $50 billion. If successful, this offering may become the largest IPO in the United States for 2023, provided it occurs before December 31.
Medline’s CEO, Jim Boyle, emphasized the seriousness of the decision, stating, “Becoming a public company is a responsibility that we take seriously.” In a note accompanying the filing, he highlighted the company’s commitment to delivering value to shareholders through a focus on customer service, excellence in execution, and long-term strategic success. Boyle assured stakeholders of the company’s ongoing dedication to transparency and integrity in its operations.
The company is known for producing a vast array of medical products, including patient gowns, medical instruments, personal protective equipment, and the widely recognized pink and blue striped blankets used for newborns in hospitals. Medline employs over 43,000 individuals globally, with nearly 6,100 located in the Chicago area, including around 850 at its primary distribution center in Grayslake.
Financial Background and Market Position
In its SEC filing, Medline reported net sales of $13.5 billion for the six months ending on June 28, 2023. The company’s history is notable; it was founded in 1966 by brothers Jim and Jon Mills and remained under the Mills family’s ownership for decades. In June 2021, the family decided to sell a majority stake to private equity firms, including Blackstone Group, Carlyle Group, and Hellman & Friedman, for an estimated total value of $34 billion, including debt.
This IPO has been anticipated by industry observers for some time. Medline confirmed in December 2022 that it had confidentially submitted a draft registration statement to the SEC regarding the IPO. The company previously navigated public markets in the early 1970s, when it became publicly traded for five years before reverting to private ownership.
With the filing now public, many are eager to see how Medline’s IPO journey unfolds and whether it will meet the ambitious targets set forth. As the company prepares to transition into a publicly traded entity, industry watchers remain focused on its next steps and the implications for the broader medical supply sector.
