08:12 AM EDT, 06/03/2024 (MT Newswires) -- (Updates with additional details from the second paragraph.)

Waste Management (WM) will buy Stericycle ( SRCL ) for about $7.20 billion, including $1.40 billion of Stericycle's ( SRCL ) net debt, the companies said Monday.

Under the terms of the deal, Waste Management will pay $62 per share for the medical waste disposal firm, a premium of 24% over the company's 60-day volume weighted average price as of May 23, when news of the possible sale first emerged, the company said.

The transaction, unanimously approved by the boards of both companies, is expected to close as early as Q4, subject to customary closing conditions, including regulatory approvals and approval by a majority of Stericycle ( SRCL ) shareholders.

The transaction is not subject to any financing conditions, the companies said, with Waste Management planning to use bank debt and senior notes to finance the acquisition.

In addition to hospital waste, Stericycle ( SRCL ) operates a business called Shred-it that disposes of sensitive documents and digital files.

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