Waste Management to Acquire Stericycle for $7.2 Billion

Waste Management, Inc. and Stericycle have agreed on a deal in which WM will purchase all outstanding shares of Stericycle for $62.00 per share in cash, amounting to a total enterprise value of about $7.2 billion including approximately $1.4 billion of Stericycle’s net debt. This represents a premium of 24% to Stericycle’s 60-day volume weighted average price as of May 23, 2024.

Stericycle, a leading provider of regulated medical waste and compliance services as well as secure information destruction services, views the transaction as unlocking new opportunities for delivering diversified services to customers and supporting investment in the growth and development of team members.

The acquisition is expected to bring about significant strategic and financial benefits for Waste Management, including expansion of its environmental service offerings, commitment to sustainable waste solutions, and creation of synergies leading to increased earnings and cash flows.

The deal is anticipated to be closed in the fourth quarter of 2024, subject to regulatory approvals and the approval of Stericycle’s outstanding common shares. Waste Management plans to finance the transaction using a combination of bank debt and senior notes, with a net debt-to-EBITDA ratio expected to be approximately 3.4x in the near term. The company aims to achieve targeted leverage and return to normal run-rate share repurchases within 18 months of the acquisition's close.