WM broadens reach into medical waste and secure information disposal
The $7.2 billion acquisition of Stericycle, with its “strong long-term business profile,” advances WM’s growth strategy
WM has entered the medical waste and secure information disposal market sectors with the acquisition of Stericycle. As part of WM, the regulated medical waste and secure information destruction company 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, says WM management.
"I am pleased to welcome the talented Stericycle team to WM," says Jim Fish, president and chief executive officer 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."
Enhancing a strong outlook through customer-centric growth
WM was attracted to Stericycle's strong long-term business profile and expects to enhance the projected financial outlook of the business through "customer-centric growth".
The acquisition aims to strengthen WM's operating EBITDA and cash flows. The integration team was led by Rafa Carrasco, who will also lead the new WM Healthcare Solutions division, comprised of the regulated medical waste and secure information destruction businesses.
"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 Carrasco, senior vice president, enterprise strategy for WM, and now president, 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."
The previously announced purchase price of $62.00 per share in cash represents a total enterprise value of approximately $7.2 billion. Beginning on November 4, 2024, Stericycle stock is no longer traded on the NASDAQ.
