WM completes acquisition of Stericycle

Houston-based waste and recycling firm WM has announced it has completed its $7.2 billion acquisition of Stericycle Inc., an Illinois-based medical waste company. The transaction valued the company at $62 per share.

The merger cleared a final regulatory hurdle last week when it received approval from the Competition Bureau of Canada pursuant to the Canadian Competition Act.

“I am pleased to welcome the talented Stericycle team to WM,” says Jim Fish, president and CEO of WM. “The completion of this acquisition advances our growth strategy, builds on our sustainability initiatives and aligns with our long-term financial goals. This acquisition provides a complementary business platform in medical waste, a sector with attractive near- and long-term growth dynamics, and in secure information destruction services to further our leading suite of comprehensive waste and environmental solutions.

“Importantly, with its strong long-term business profile and our ability to enhance the projected financial outlook of the business through customer-centric growth and projected run-rate cost synergies exceeding $125 million, this acquisition positions us well to strengthen our operating EBITDA [earnings before interest, taxes, debt and accrual] and cash flows. This achievement would not be possible without the dedication of our integration teams, which have been led by Rafa Carrasco, who will also lead our new WM Healthcare Solutions division comprised of the regulated medical waste and secure information destruction businesses.”

As part of WM, the regulated medical waste and secure information destruction businesses will benefit from a range of synergies, including leveraging WM’s expertise in logistics, technology-enabled cost optimization and its leading waste disposal network, among others.

“With today’s announcement, WM is well-positioned to win in the growing medical waste industry and deliver tailored and effective solutions in secure information destruction that further our sustainability leadership,” says Rafa Carrasco, senior vice president, enterprise strategy for WM, and president of WM Healthcare Solutions division. “We look forward to delivering on the compelling strategic and financial benefits of the combined business while protecting the health, safety and well-being of the communities we serve.”

WM announced its intended acquisition of Stericycle in June, with Fish stating at the time, “the acquisition of Stericycle [broadens] the scope of our service offerings, bringing together the leader in solid waste and a premier company in regulated medical waste services.”