WM - Waste Management's Big Move Is A Win For Stericycle
2024-06-04 04:58:45 ET
Summary
- Waste Management announces the acquisition of Stericycle in a $7.15 billion all-cash deal, causing Stericycle shares to spike and Waste Management shares to drop.
- Stericycle shareholders benefit from the premium offer and can exit their position, while Waste Management's success depends on the realization of synergies and the impact on leverage.
- Waste Management aims to expand its environmental service offerings and gain access to Stericycle's regulated waste and compliance services, as well as its secure information destruction services.
June 3rd of 2024 ended up being a really great day for shareholders of Stericycle ( SRCL ). Shares of the company spiked, closing up 14.6%, after news broke that Waste Management ( WM ) would be acquiring the company in an all-cash deal valued at $7.15 billion on an enterprise value basis. This translates to $62 per share, for a premium of 20.3%. Unfortunately, shares of Waste Management did the exact opposite, dropping by 4.5%. Frankly, this is to be expected since the market perceives acquisitions like this to be at a premium to fair value....
Waste Management's Big Move Is A Win For Stericycle