Waste Management (WM) has reached an agreement to acquire Stericycle, a U.S. company specializing in medical waste management and secure document and hard drive destruction. The deal, valued at approximately $7.2 billion, includes $1.4 billion in Stericycle’s net debt. Both companies’ boards have approved the transaction, which is set to finalize in the fourth quarter of 2024, pending regulatory and shareholder approvals.
WM anticipates that the acquisition will enhance its earnings and cash flow within a year of completion. The company expects to achieve annual synergies of $125 million through its expertise in logistics, technology-driven cost optimization, and its extensive waste disposal network.
In 2023, Waste Management Inc. led the global market with $20.43 billion in revenue from waste services, surpassing all competitors. Although Veolia, a French environmental services firm, reported higher overall revenue at €45 billion, only €14.7 billion of that was from waste activities. With Stericycle’s additional $2.7 billion in annual revenue, WM will further solidify its dominant position. Its closest U.S. competitor, Republic Services, reported $14.9 billion in revenue for the same year.
Waste Management (WM) has agreed to acquire Stericycle in a $7.2 billion deal, which includes $1.4 billion in net debt. Set to close in Q4 2024, pending approvals, this acquisition is expected to boost WM’s earnings and cash flow within a year. By leveraging its expertise and extensive network, WM anticipates achieving $125 million in annual synergies. This strategic move will enhance WM’s already leading position in the global waste services market, which reported $20.43 billion in revenue in 2023. Integrating Stericycle’s $2.7 billion in annual revenue will further solidify WM’s dominance over competitors like Republic Services.