WM Completes Acquisition of Stericycle

On November 4, 2024, Waste Management, Inc. (NYSE: WM) finalized the acquisition of Stericycle, Inc. as per the 8-K SEC filing. The acquisition was completed through a merger with Stag Merger Sub Inc., a wholly owned subsidiary of Waste Management. Stericycle, a Delaware corporation, now operates as a wholly owned indirect subsidiary of Waste Management.

The merger agreement, dated June 3, 2024, saw each share of Stericycle common stock being converted into the right to receive $62.00 per share in cash at the Effective Time of the merger. Additionally, outstanding options to purchase Stericycle common stock were either converted into cash or cancelled based on their exercise price. Stericycle restricted stock units held by employees were assumed by Waste Management and converted into restricted stock units related to Waste Management’s common stock.

Financially, Waste Management utilized approximately $7.2 billion (net of cash acquired) for the acquisition, inclusive of debt assumption and repayment. The transaction was funded through a combination of borrowings and available cash on hand.

In a related press release issued on the Closing Date, Waste Management highlighted the strategic significance of this acquisition. The purchase expands Waste Management’s environmental solutions into the healthcare market, aligning with the company’s sustainability objectives. With Stericycle’s businesses now under Waste Management’s umbrella, significant synergies are anticipated, including operational efficiencies and enhanced service offerings.

The enhanced business profile post-acquisition is expected to foster customer-centric growth, with projected cost synergies exceeding $125 million. The regulatory-compliant medical waste segment and secure information destruction services fit well within Waste Management’s suite of comprehensive waste and environmental solutions.

As part of the deal, Waste Management’s Executive Vice President and Chief Legal Officer, Charles C. Boettcher, signed the report on behalf of the company. The filing adds that certain conditions and approvals were necessary for the completion of the merger and related transactions.

Moreover, Waste Management indicated that they expect to settle the Exchange Offer and Consent Solicitation regarding Stericycle’s 3.875% Senior Notes due 2029 shortly after the acquisition. The expiration date for the Exchange Offer and Consent Solicitation is set for November 5, 2024, with anticipated settlement by November 8, 2024.

The filing also states that the complete Agreement and Plan of Merger, along with the press release announcing the acquisition completion, are available for reference.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Waste Management’s 8K filing here.

Waste Management Company Profile

Waste Management, Inc, through its subsidiaries, engages in the provision of environmental solutions to residential, commercial, industrial, and municipal customers in the United States and Canada. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility (MRF), or disposal site; and owns and operates transfer stations, as well as owns, develops, and operates landfill facilities that produce landfill gas used as renewable natural gas for generating electricity.