WM to Acquire Medical Waste Services Provider Stericycle for $7.2 Billion

Houston-based WM (formerly Waste Management) has announced the purchase of Illinois medical waste services provider Stericycle.

The move allows WM to offer its customers more comprehensive solutions, leveraging its focus on logistics and technology-enabled cost optimization.

"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,” commented Jim Fish, WM CEO and president. “We have a proven track record of integrating and optimizing 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.”

WM has agreed to purchase all outstanding shares of Stericycle for $62 each in cash, totaling $7.2 billion, with the inclusion of $1.4 billion of Stericycle’s net debt. The acquisition is expected to generate $125 million of projected annual synergies.

Cindy J. Miller, Stericycle CEO and president, stated, "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,”

She added: "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.”