An employee cleans his company vehicle at a waste management facility on February 12, 2024 in Austin, Texas.
Brandon Bell | Getty Images
Waste management will buy waste removal company from Illinois Stericycle in a deal worth about $7.2 billion to the company announced Monday.
Under the agreement, WM will acquire all outstanding shares of Stericycle for $62 per share in cash. This represents the total transaction value, including Stericycle’s net debt, of approximately $1.4 billion.
The price per share also represents a 24% premium to Stericycle’s 60-day volume-weighted average price as of May 23, the last trading day before Bloomberg. reported that Stericycle was considering a possible sale after receiving a stake in the takeover.
The companies said the transaction was unanimously approved by their boards of directors and is expected to close as early as the fourth quarter of 2024.
Following the announcement, Stericycle shares rose more than 16% in premarket trading Monday, while WM shares fell nearly 2%.
The announcement came the day after The Wall Street Journal. reported that WM is close to a deal to buy Stericycle.