WM buys Stericycle for US$7.2 billion

Waste Management, Inc. is buying medical waste management specialist Stericycle for $7.2 billion. 

WM president and CEO Jim Fish said the deal is intended to help WM round out its service offerings.

The company said it expects the addition of Stericycle to expand its environmental service offerings. The acquisition of Stericycle adds assets in the medical waste and secure information destruction industries to WM’s environmental solutions. WM expects this business to deliver revenue growth beyond the solid waste business.

This acquisition also allows WM to further its investment in North America’s recycling infrastructure and enhance the environmental value of Stericycle’s secure information destruction business.

WM expects the transaction to generate more than $125 million in annual run-rate synergies. These synergy opportunities are driven by WM’s logistics expertise, its track record of using technology to optimize operating and SG&A costs, and its disposal asset network. The Stericycle acquisition is expected to be accretive to WM’s earnings and cash flows within one year of close.

“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,” said Cindy J. Miller, Stericycle’s president and CEO.

“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.”

The deal was unanimously approved by both companies’ boards and is expected to close as early as the fourth quarter of 2024, subject to the satisfaction of customary closing conditions, including regulatory approvals and approval by a majority of the holders of Stericycle’s outstanding common shares.