The Rundown Deep Dive: Is Medline the Costco of Healthcare? Inside the Biggest IPO of 2025
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Dec 20, 2025 Explore the massive IPO of Medline, a lesser-known medical-supply giant, which recently surpassed high-profile names like Circle and Klarna. Discover why its CEO likens it to the 'Costco of Healthcare,' diving into its membership model and product breadth. Learn about its impressive revenue growth and strong customer retention. The discussion also addresses potential investment risks, including heavy debt and margin concerns, while offering insight into Medline's unique distribution network and self-manufacturing capabilities.
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Founding, Buyback, And The 2021 LBO
- Medline was founded in 1966 by brothers Jim and John Mills and first went public in 1972 before the family took it private again.
- The Mills family later sold 79% in a $34 billion LBO in 2021, which loaded the company with significant debt.
IPO Size And First-Day Performance
- Medline priced its IPO at $29 per share, raised $6.3 billion, and debuted with a >40% first-day pop to a market cap above $50 billion.
- It became the largest US IPO since Rivian and one of only five US IPOs raising over $5 billion in the past decade.
Costco-Like Model And Private-Label Strength
- CEO Jim Boyle frames Medline as the "Costco of healthcare" because of its prime vendor/membership model and strong private brand.
- About 49% of 2024 revenue came from Medline-branded products, which yield higher margins than third-party goods.