American medical supplies company Medline (Nasdaq: MDLN) plans to conduct its initial public offering (IPO) in the United States soon, with a valuation of up to $55.3 billion, which will make it one of the largest private equity-backed IPOs in U.S. history. Medline is expected to trade on Nasdaq under the ticker symbol MDLN, with plans to issue 179 million shares at an expected price range of $26 to $30 per share. Medline's market capitalization is projected to surpass all other U.S. IPO companies this year, making it the largest private equity financing case since HCA Healthcare went public in 2011.
According to recent news, Medline has secured investment commitments from major global investors totaling $2.35 billion, with investors including prominent institutions such as Baillie Gifford, Capital Group, Janus Henderson, the Government of Singapore Investment Corporation (GIC), Viking Global Investors, and Durable Capital Partners. Morgan Stanley's Counterpoint Global is also on the investor list. Notably, Medline's founding family, the Mills family, plans to purchase $250 million in shares during the IPO. This is purely market observation, not any investment advice.
Background and acquisition process of Medline
Medline was founded in 1966 by the Mills family, initially focused on manufacturing medical supplies and equipment, and later gradually became a giant in the American medical products sector. The company has been controlled by the Mills family for a long time until 2021 when the family sold a majority stake in the company for $34 billion to a private equity consortium formed by Blackstone Group, Carlyle Group, and Hellman & Friedman, a deal considered one of the largest leveraged buyouts in history.
Since privatization, Medline has undergone multiple expansions, including the acquisition of Ecolab's surgical solutions division, valued at $905 million. Additionally, the company has invested $1.6 billion in its distribution network. These acquisitions not only expanded Medline's product line but also further solidified its leading position in the global medical supplies market. The Mills family distributed medical supplies to nursing homes, pharmacies, and 45% of hospital systems nationwide during the early stages of the COVID-19 pandemic in 2020, making them a key support provider in the U.S. response to the pandemic.
Medline's financial performance and IPO details
Medline's IPO is expected to be traded on the Nasdaq Global Select Market under the ticker symbol MDLN. The underwriting team for this IPO is led by Goldman Sachs, Morgan Stanley, Bank of America, and JPMorgan Chase, with over 40 banks participating in the offering. According to Medline's financial report, the company achieved a net profit of $977 million and revenue of $20.6 billion for the nine months ending September 27, 2023, an increase from a net profit of $911 million and revenue of $18.7 billion in the same period of 2022. Medline's financial condition shows a stable growth trend, which is a significant highlight for its upcoming IPO. If the final pricing approaches the upper range, it will make Medline's IPO exceed all U.S. IPOs, potentially becoming the largest private equity-backed listing in U.S. stock market history.
The capital returns of the Mills family
After selling a majority stake in the company to a private equity firm in 2021, the Mills family continued to retain a portion of their shares. According to Forbes, the shares held by the Mills family are valued at $6 billion to $7 billion before the company's upcoming IPO. Based on the latest securities filings, the value of these shares has brought the Mills family's total assets to at least $20 billion, a figure significantly higher than Forbes' $1.1 billion valuation of their assets in 2014.
After selling shares in 2021, the Mills family established a family office named Council Ring Capital and began a gradual exit from Medline's daily operations, marking the gradual completion of the family's historical mission. Nevertheless, the family's capital returns remain considerable, indicating that Medline will maintain a strong market position in the coming years.
The influence of Medline
Medline manufactures medical supplies ranging from neonatal blankets to various bandages, but it did not gain widespread attention until before the outbreak of the COVID-19 pandemic in 2020. Medline played a crucial role in the U.S. response to the pandemic, distributing medical supplies to 45% of hospital systems, pharmacies, and nursing homes nationwide, providing critical medical support during the pandemic. Medline's innovative product designs have also had a profound impact on the healthcare industry, with the company inventing a 360-degree surgical gown that has seen widespread use in global healthcare systems.
This article on U.S. IPO: Medical supplies company Medline's listing is expected to surpass all U.S. public companies this year, first appeared in Chain News ABMedia.