SEATTLE (Recycling Monster): WM announced plans to acquire Illinois-based Stericycle in a $7.2 billion deal, as part of expanding its healthcare waste services portfolio. The all-cash deal will acquire all outstanding shares of Stericycle for $62 per share. The deal is expected to close by Q4 this year, subject to satisfaction of necessary regulatory approvals and approval by Stericycle shareholders.
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In a press release, WM noted that the acquisition is expected to contribute to its earnings and cash flows within a year of the closing of the transaction. It will generate more than $125 million in run-rate synergies every year. The projected robust growth outlook for healthcare services in North America in the forthcoming years promises to deliver significant revenue growth.
Jim Fish, CEO, WM reminded that the company has a strong track record of integrating and optimizing acquired businesses and delivering strong return on investment to its shareholders. Meantime, Cindy Miller, CEO, Stericycle said that the deal will combine the company’s expertise in regulated medical waste and secure information destruction with WM’s exceptional portfolio of environmental solutions.
The acquisition will be financed using a combination of bank debt and senior notes, the company noted.