Waste Management To Acquire Stericycle For $62.00/Share In Cash, At 20% Premium
Portfolio Pulse from Lekha Gupta
Waste Management Inc. (NYSE:WM) is set to acquire Stericycle, Inc. (NASDAQ:SRCL) for $62.00 per share in cash, representing a 20% premium to SRCL's previous closing price. The deal, valued at approximately $7.2 billion including debt, is expected to close in Q4 2024. Waste Management anticipates annual run-rate synergies of over $125 million and expects the acquisition to be accretive to earnings and cash flows within a year of closing. The transaction will be financed using a combination of bank debt and senior notes.
June 03, 2024 | 1:50 pm
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POSITIVE IMPACT
Investors can gain exposure to Waste Management through the iShares U.S. Utilities ETF (NYSE:IDU), which includes WM in its holdings. The acquisition of Stericycle is expected to positively impact WM's stock, potentially benefiting IDU.
As WM's stock is expected to benefit from the acquisition, ETFs holding WM, such as IDU, may also see positive impacts.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Waste Management through the TCW Transform Systems ETF (NYSE:NETZ), which includes WM in its holdings. The acquisition of Stericycle is expected to positively impact WM's stock, potentially benefiting NETZ.
As WM's stock is expected to benefit from the acquisition, ETFs holding WM, such as NETZ, may also see positive impacts.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Stericycle, Inc. (NASDAQ:SRCL) shares are trading higher following the announcement of its acquisition by Waste Management for $62.00 per share, a 20% premium to its previous closing price. The deal is valued at approximately $7.2 billion including debt and is expected to close in Q4 2024.
The acquisition news has led to a significant increase in SRCL's share price, reflecting investor optimism about the premium offered and the strategic fit of the deal.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Waste Management Inc. (NYSE:WM) is acquiring Stericycle for $62.00 per share, a deal valued at $7.2 billion including debt. The acquisition is expected to generate annual run-rate synergies of over $125 million and be accretive to earnings and cash flows within a year of closing.
The acquisition is expected to enhance Waste Management's service offerings and generate significant synergies, which should positively impact its earnings and cash flows.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100