Medline IPO Is Needed Win for PE Backers After 2021 Buyout

When the Mills family sold Medline Inc. to private equity in one of the largest leveraged buyouts ever, the $32 billion deal seemed the apotheosis of a Covid economy defined by low interest rates and stratospheric valuations.

Four years later, with market forces radically different and opportunities for major public exits limited, Medline’s private equity backers have notched a rare recent win. Shares of the medical-supplies company surged 41% from the offering price in its public debut Wednesday, valuing Medline at about $55 billion. That handed sponsors including Blackstone Inc., Carlyle Group Inc. and Hellman & Friedman a return of more than double their initial equity investment.