An worker cleans his company vehicle at the Waste Management facility in Austin, Texas, on Feb. 12, 2024.
Brandon Bell | Getty Images
Unused Management will buy Illinois-based waste-disposal company Stericycle in a deal valued at about $7.2 billion, the companies portended Monday.
Under the agreement, WM will acquire all outstanding shares of Stericycle for $62 per share in cash. This pretend to bes the deal’s total value when including Stericycle’s net debt of around $1.4 billion.
The per-share price also delineates a 24% premium to Stericycle’s 60-day volume-weighted average price as of May 23, the last trading day before Bloomberg check in that Stericycle was considering a potential sale after receiving takeover interest.
The companies said the deal was unanimously approved by their lodges of directors and is expected to close as early as the fourth quarter of 2024.
Following the announcement, shares of Stericycle rose around 14.6% during Monday’s customer session, hitting a new 52-week high. Meanwhile, shares of WM fell about 4.5%.
The announcement comes one day after The Wall Thoroughfare Journal reported that WM was nearing a deal to buy Stericycle.