Why Waste Management Shares Are Trading Lower Monday

Waste Management, Inc. WM stock is down Monday after the company announced plans to acquire Stericycle SRCL.

What Happened: Waste Management has entered into a definitive agreement to acquire Stericycle where the company will purchase all outstanding Stericycle shares at $62 a share, totaling to $7.2 billion.

Waste Management expects the acquisition to allow the company to expand its investment in North America’s recycling infrastructure.

In addition, Stericycle’s acquisition enriches WM’s environmental solutions with assets in medical waste and secure information destruction sectors. The company anticipates more than $125 million in annual run-rate synergies and strong earnings as well as cash flow within one year of closing.

“At WM, we are committed to maximizing value for all our stakeholders by providing a comprehensive suite of environmental solutions to the market. The acquisition of Stericycle is a significant step in advancing this commitment because it broadens the scope of our service offerings, bringing together the leader in solid waste and a premier company in regulated medical waste services,” said Jim Fish, president and CEO of WM.

“We have a proven track record of integrating and optimizing acquired businesses that benefit our customers and employees and deliver a strong return on investment for our shareholders. We look forward to working with the Stericycle team to capture the strategic, customer service, environmental, and financial benefits of this acquisition.”

The deal is expected to close as soon as the fourth quarter of 2024 subject to certain closing conditions, regulatory approvals and approval by a majority of Stericycle’s shareholders.

Related Link: Stericycle, MarineMax, Agios Pharmaceuticals And Other Big Stocks Moving Higher On Monday

WM Price Action: At the time of publication, Waste Management shares are down 3.94% at $202.42, according to data from Benzinga Pro.

Image: 5669431 from Pixabay.