US medical supplies firm Medline plans $5b IPO: sources

Medline, a US-based medical supplies manufacturer, is preparing for an initial public offering that could raise about US$5 billion, according to Bloomberg.

The company reported around US$13.5 billion in net sales for the first half of 2025, up 9.7% year-on-year, sources familiar with the matter said.

Free cash flow for the same period was around US$671 million, down 30% from a year earlier, which the company cited tariff costs and US$127 million in legal settlements.

Medline’s net sales included US$9.3 billion from US acute care, US$3.3 billion from US non-acute, and US$0.9 billion from international markets.

Adjusted EBITDA rose to US$3.4 billion in 2024 from US$2.8 billion in 2023, the sources said.

The IPO could be the largest in the US this year if completed before the end of December.

Medline employs over 43,000 people and was acquired in a US$34 billion leveraged buyout in 2021 by Blackstone, Carlyle, and Hellman & Friedman.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Medline IPO math on cash flow and tariffs

First-half 2025 free cash flow fell 30% to $671 million, pulled down by tariff-hit inventory costs and a $127 million legal settlement.
Without those items, free cash flow would have slipped 1.6% to $993 million, so core operations looked steady despite tariff pressure.
IPO case turns on whether investors view inventory and payables swings as timing issues that do not cut long-run margins, which could lift the multiple on normalized cash.
Revenue rose 9.7% in the first half of 2025, and 2022 to 2024 compound annual growth was 9%, so the top line kept climbing as cash conversion lagged.

Section 301 exclusions extended to November 29, 2025 while exposure on non-excluded Chinese supplies continues

USTR extended 178 product exclusions from Section 301 tariffs (US tariffs on certain Chinese imports under the Trade Act of 1974) through November 29, 2025 1. Products not covered remain subject to Section 301 tariffs.
Medical distributors such as Medline face choppy procurement costs because extensions are temporary, which forces constant tracking of Harmonized Tariff Schedule of the United States (HTSUS) codes 1.
Software firms selling trade compliance or sourcing tools to healthcare suppliers can tackle this need by flagging products that qualify under 9903.88.69 or 9903.88.70 1.
The same uncertainty lifts demand for nearshoring advisory services, as suppliers weigh moving production closer to end markets to cut future tariff risk.