Stericycle, Inc. (SRCL) announced the completion of its pending acquisition of MedServe, Inc., which is now a wholly-owned subsidiary of Stericycle.
In May 2009, Stericycle and its wholly-owned subsidiary, ATMW Acquisition Corp., entered into an agreement and plan of merger with MedServe, Inc. MedServe is engaged in the collection, transportation, treatment and disposal of medical waste, hazardous waste, universal waste and other regulated wastes, sharps management services, safety and compliance training services, and other related businesses.
To get clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, Stericycle had entered into an agreement with the United States Department of Justice and the States of Missouri and Nebraska. These require the company to divest certain assets that it acquired from MedServe consisting of an autoclave treatment facility in Newton, Kansas, four transfer stations in Kansas, Oklahoma, Nebraska and Missouri, and certain large customer accounts and associated assets related to these facilities.
MedServe’s annual revenues, as adjusted for the required divestiture, are approximately $36.0 million. Stericycle expects this acquisition to be accretive to its earnings by 2 cents per share in the first year.
Stericycle is currently the largest waste management company in Canada, Mexico, Ireland and the UK, and is gaining scale in Argentina. The company entered the Canadian, Irish and UK markets through the purchase of large local competitors and developed an initial footprint in Mexico and Argentina through joint ventures.
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