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Newly public Medline is setting aside $800 million for regional distributor and med tech acquisitions, CEO Jim Boyle tells Axios Pro.

Why it matters: The company should have plenty of targets to choose from next year.

Driving the news: Medline's stock popped more than 20%, closing at $41 on Wednesday following its $6.3 billion IPO. 

What's next: Aside from distribution and med tech acquisitions, Medline will look at buying opportunities in Europe to expand access channels and new product categories, Boyle says.

State of play: Med tech founders are seeking exits while venture capital funding is concentrated in later-stage fundings — setting the stage for deals next year, PitchBook analysts write. 

What they're saying: "We will continue to accelerate and expand upon the existing strategy and look for new markets to enter," says Boyle, who was promoted to CEO in 2023.

Follow the money: Medline is also tasked with paying down a $16.8 billion debt load left, in part, by a $34 billion leveraged buyout in 2021 by Blackstone, Carlyle, and Hellman & Friedman.

About $4 billion of the offering proceeds will be used to pay it down, sinking gross EBITDA leverage to 3.25x, with a goal to get below 3x, Boyle says.

Friction point: Like other global product companies, Medline faces tariff pressures and estimates a $325 million to $375 million tariff hit to its fiscal year 2025 income before taxes, per an SEC filing.

The company is also navigating consolidation and growing bargaining power among its hospital and physician group customers, which could put pressure on margins.

The other side: "Yes, (consolidation) gives them more negotiating power, but we already drive the lowest cost from a product perspective," Boyle says.

 "Our self-manufacturing brand drives value and savings, and our supply chain enables it."

Catch up quick: Based in Northfield, Ill., Medline sells everything from latex gloves to operating tables.

It employs more than 43,000 people worldwide, operates in more than 100 countries and territories, and competes with the likes of Cardinal Health, McKesson and Owens & Minor.

Boyle says Medline began preparing for Wednesday's IPO 18 months ago.

The bottom line: As the world's largest medical-surgical supplier, Medline must find new growth channels. 

Medline earmarks $800M for distributor and medtech deals

The medical supplier will target distributor and medtech deals.

Illustration of a first aid bag filled with cash.   

Newly public Medline is setting aside $800 million for regional distributor and med tech acquisitions, CEO Jim Boyle tells Axios Pro.Why it matters: The company should have <a class="gtmContentClick" data-vars-link-text="plenty of targets" data-vars-click-url="https://www.axios.com/pro/health-tech-deals/2025/12/09/med-tech-deal-frenzy" data-vars-content-id="ae1eae17-ce20-47c6-ad4f-beedde715ad0" data-vars-headline="Medline earmarks $800M for distributor and medtech deals" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/health-tech-deals/2025/12/09/med-tech-deal-frenzy" target="_self">plenty of targets</a> to choose from next year.

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Medline earmarks $800M for distributor and medtech deals

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