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Waste Management to Acquire Stericycle in $7.2 Billion Cash Deal, Including Debt

  • June 3, 2024

Waste Management - Stericycle Merger

Waste Management, Inc. (WM) entered into a definitive agreement on June 3, 2024, to acquire medical waste disposal company Stericycle Inc. (SRCL) for $7.2 billion, including debt, as it looks to tap into the growing healthcare waste disposal market in the United States.

Deal Structure:

As per the terms outlined in the agreement, Waste Management will acquire all outstanding shares of Stericycle for $62.00 per share in cash, representing a premium of 20.29% from the stock’s last close.

Company Profile:

WM is North America’s leading provider of comprehensive environmental solutions, specializing in waste collection, recycling, disposal, and renewable energy. It is acquiring Stericycle, which helps local clinics, surgery centers, and hospitals dispose of their biohazardous and pharmaceutical waste.

Stericycle had started weighing options for a potential sale late last month, according to Bloomberg. Stericycle’s current EV/EBITDA (TTM) ratio is 16.42, above the sector median of 13.08.

Deal Details and Timeline:

The deal, which includes $1.4 billion of Stericycle’s debt, is expected to close as early as the fourth quarter of 2024.

Waste Management, which dominates the garbage collection space in the United States, expects that the transaction will generate more than $125 million in annual run-rate synergies, and will be accretive to its earnings and cash flows within one year of close.

Deal Metrics:

For a comprehensive understanding of this M&A transaction, please click on the following link:

Deal Metrics for the Acquisition of Stericycle Inc. (SRCL) by Waste Management, Inc. (WM)

The Deal Metrics page for each merger or acquisition includes:

  • A spread history chart of the merger from announcement through eventual completion or failure.
  • Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
  • News and SEC filings.
  • A history of deal updates.
  • And a whole lot more.

Disclaimer: Prior to buying or selling any securities mentioned in this article, it is strongly recommended that you conduct your own due diligence. We cannot guarantee the absolute accuracy or completeness of the data or content provided herein.

Editor’s Note: Baranjot Kaur contributed to this article