WM to acquire Stericycle

WM and Stericycle Inc. have entered into a definitive agreement under which Houston-based WM will acquire all outstanding shares of Stericycle for $62 per share in cash, representing a total enterprise value of about $7.2 billion when including about $1.4 billion of Stericycle’s net debt.

The per-share price represents a premium of 24 percent to Stericycle’s 60-day volume weighted average price as of May 23, the last trading day before an initial report that Stericycle was considering a potential sale.

Bannockburn, Illinois-based Stericycle provides customers in North America and Europe with regulated medical waste and compliance services as well as secure information destruction services.

“At WM, we are committed to maximizing value for all our stakeholders by providing a comprehensive suite of environmental solutions to the market," WM President and CEO Jim Fish says. "The acquisition of Stericycle is a significant step in advancing this commitment because it broadens the scope of our service offerings, bringing together the leader in solid waste and a premier company in regulated medical waste services.

"We have a proven track record of integrating and optimizing acquired businesses that benefit our customers and employees and deliver a strong return on investment for our shareholders. We look forward to working with the Stericycle team to capture the strategic, customer service, environmental and financial benefits of this acquisition.”

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WM says the acquisition advances its growth strategy, underscores the importance of executing on its sustainability initiatives and aligns with the company’s financial goals, including growth in operating earnings before interest, taxes, depreciation and amortization (EBITDA) and cash flow.

The company expects the addition of Stericycle to expand its environmental service offerings, continue its commitment to sustainable waste solitons, strengthen the foundation for sustainable long-term growth, create significant synergies and grow earnings and cash flows and support its capital allocation priorities.

“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,” Stericycle President and CEO Cindy J. Miller says. “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 transaction is expected to close as early as the fourth quarter of 2024.

Centerview Partners LLC, New York, is serving as exclusive financial advisor to WM and Vinson & Elkins LLP and Baker Botts LLP, Washington, are serving as WM’s legal counsel. BofA Securities is serving as exclusive financial advisor to Stericycle and Latham & Watkins LLP, New York, is serving as Stericycle’s legal counsel.