Waste Management, Inc. (WM, Financial) has successfully completed its acquisition of Stericycle, Inc., a move that marks a significant expansion in Waste Management's service offerings. The merger, finalized on November 4, 2024, was executed through a previously announced Agreement and Plan of Merger dated June 3, 2024.
As part of the merger agreement, Stericycle has become a wholly owned indirect subsidiary of Waste Management. Each share of Stericycle common stock was converted into the right to receive $62.00 in cash, resulting in an aggregate transaction value of approximately $7.2 billion. This amount includes the assumption of $0.5 billion in debt and the repayment of approximately $0.8 billion in net debt, funded through Waste Management's credit facilities and cash reserves.
The merger also involved the conversion of Stericycle's stock options and restricted stock units into cash or equivalent Waste Management stock awards, ensuring a seamless transition for Stericycle's employees who continue with the company post-merger.
In conjunction with the merger, Waste Management initiated a private exchange offer and consent solicitation for Stericycle's outstanding 3.875% Senior Notes due 2029. The exchange offer is set to expire on November 5, 2024, with settlement expected around November 8, 2024.
This strategic acquisition is expected to bolster Waste Management's capabilities and market position, providing enhanced services to its customers and creating value for its shareholders.
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