Health care waste : WM to acquire medical waste services company Stericycle for $7.2 billion
Leading waste management company Waste Management (WM) announced that it will acquire Stericycle, a leading provider of regulated medical waste and compliance services, as well as secure information destruction services. The purchase provides WM with a complementary business platform in the healthcare market, a sector with attractive near- and long-term growth dynamics.
WM will acquire all of the outstanding shares of Stericycle for $62.00 per share in cash, representing a total enterprise value of approximately $7.2 billion, including approximately $1.4 billion of Stericycle's net debt.
The purchase leverages WM’s expertise in logistics and technology-enabled cost optimisation, as well as its leading waste disposal network to deliver more than $125 million of projected annual synergies.
“At WM, we are committed to maximising value for all our stakeholders by providing a comprehensive suite of environmental solutions to the market. The acquisition of Stericycle is a significant step in advancing this commitment because it broadens the scope of our service offerings, bringing together the leader in solid waste and a premier company in regulated medical waste services,” said Jim Fish, President and Chief Executive Officer of WM. “We have a proven track record of integrating and optimising acquired businesses that benefit our customers and employees and deliver a strong return on investment for our shareholders. We look forward to working with the Stericycle team to capture the strategic, customer service, environmental, and financial benefits of this acquisition.”
“Our sustained focus and commitment to transforming our business over the past five years has uniquely positioned Stericycle for this transaction, which creates significant value for shareholders, unlocks new opportunities to deliver diversified services to customers, and supports investment in the growth and development of our team members,” said Cindy J. Miller, Stericycle’s President and Chief Executive Officer. “As customers seek to manage a greater volume and variety of materials in a safe, responsible, and sustainable way, Stericycle’s knowledge and expertise in regulated medical waste and secure information destruction are compelling additions to WM’s broad portfolio of environmental solutions. We are proud of all that we’ve accomplished to shape a healthier and safer world and look forward to our future as part of WM.”