WM to Buy Stericycle for $7 Bil.

Date: June 3, 2024

Source: Press Release

WM (Waste Management) announced plans to acquire medical waste company Stericycle for $7.2 billion, a figure that includes $1.4 billion in debt. The deal could close as early as Q4 subject to regulatory and shareholder approval. WM years ago, had a foothold in medical waste management (and other niche recycling and energy conversion businesses) but ultimately divested since it was outside its core business and competency. Since then, Stericycle has gone a long way consolidating its position as the market leader in the segment and has grown rapidly lately, especially in the wake of the COVID pandemic. This makes it more appealing to an industry behemoth looking to be a one-stop-shop to its customer base, as well as make itself more appealing to potential clients.

"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," said Stericycle CEO Cindy Miller.

WM is betting on a strong growth outlook for healthcare services in the coming years and expects the segment to "deliver revenue growth that surpasses the strong fundamentals of its core solid waste business," according to its press release.

See also: https://investors.wm.com/news-releases/news-release-details/wm-acquire-stericycle-leader-medical-waste-services-72-billion

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