On June 3, Waste Management and Stericycle announced a definitive agreement for WM to acquire Stericycle at a price of $62 per share, resulting in an enterprise value of $7.2 billion. This valuation corresponds to an enterprise value/adjusted 2024 EBITDA multiple of approximately 15. We believe this is a positive development for Stericycle shareholders, as the acquisition price exceeds our pre-announcement fair value estimate of $60 and is about 38% higher than Stericycle’s stock price on May 23, prior to the emergence of takeover rumors. Given WM’s limited presence in the medical waste sector, we do not foresee any antitrust issues or competing bids. WM management anticipates that the transaction will close as early as the fourth quarter of 2024.
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