Waste Management Inc. has agreed to buy medical waste company Stericycle at an enterprise value of about $7.2 billion, inclusive of approximately $1.4 billion of debt, the companies said in a statement Monday.
Vinson & Elkins LLP and Baker Botts LLP are representing Waste Management, while Latham & Watkins LLP is representing Illinois-based Stericycle on the deal, which the companies said has been approved by both of their boards of directors and is expected to close in the fourth quarter of this year.
The $62 per share cash deal represents a 24% premium to Stericycle’s 60-day volume weighted average price as of May 23, the last trading day before a media report disclosed a potential sale, the statement said.
Stericycle’s stock was up about 15% Monday morning, at $59.25 per share, after closing at $51.54 per share Friday.
Houston-based Waste Management noted that Stericycle’s medical waste and secure information destruction solutions are positioned to benefit from the positive growth outlook for healthcare services in North America.
