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Stericycle to be acquired by Waste Management in $7.2 billion deal

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Waste Management has announced plans to acquire Stericycle, a waste-disposal company based in Illinois, in a deal valued at $7.2 billion. The agreement will see Waste Management purchasing all outstanding shares of Stericycle for $62 per share in cash. This offer represents a 24% premium to Stericycle’s 60-day volume-weighted average price as of May 23, the day before news of the potential sale was reported by Bloomberg.

Both Waste Management and Stericycle’s boards of directors have unanimously approved the deal, which is expected to close in the fourth quarter of 2024. Following the announcement, Stericycle’s stock price rose by 14.6% during Monday’s trading session, reaching a new 52-week high. On the other hand, Waste Management’s shares fell by 4.5%.

The news of Waste Management’s acquisition of Stericycle comes just a day after The Wall Street Journal reported that the deal was in the final stages of negotiation. The acquisition will bring together two major players in the waste management industry, with Waste Management being one of the largest waste collection and disposal companies in the United States.

This move is expected to further strengthen Waste Management’s position in the market and expand its range of services. Stericycle, which specializes in medical waste management, will complement Waste Management’s existing operations and diversify its portfolio. The acquisition is part of Waste Management’s strategy to grow both organically and through strategic acquisitions to enhance shareholder value.

Both Waste Management and Stericycle have a strong track record of providing innovative and sustainable waste management solutions. By joining forces, the companies aim to leverage their respective strengths and expertise to drive growth and create value for customers, employees, and shareholders.

The waste management industry is undergoing significant changes as companies seek to find more sustainable and environmentally friendly solutions. Waste Management’s acquisition of Stericycle reflects a growing trend in the industry towards consolidation and diversification. The deal is expected to have a positive impact on both companies’ financial performance and market position in the long term.

In conclusion, Waste Management’s acquisition of Stericycle represents a significant move in the waste management industry. The deal is expected to enhance Waste Management’s market position and expand its range of services, while also driving growth and creating shareholder value. The companies’ shared commitment to sustainability and innovation will enable them to better serve their customers and contribute to a more sustainable future.

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