Stericycle to divest assets to merge with MedServe
The Department of Justice announced that it will require
Stericycle, Inc. to divest certain infectious waste collection
and treatment services assets in order to proceed with
its acquisition of MedServe, Inc.
The agreement with the United States Department of Justice,
as well as the states of Missouri and Nebraska clears
the way for Stericycle to complete the deal by the end
of this year. The company said it will pay MedServe $182.5
million instead of $185 million, and will sell a sterilization
facility in Kansas, four transfer stations, and some
large customer accounts and assets related to those facilities.
“Without the divestitures required by the department,
critical healthcare facilities in Kansas, Missouri, Nebraska
and Oklahoma would have faced higher prices,” said Christine
A. Varney, assistant attorney general in charge of the
Department of Justice’s Antitrust Division.
As part of the settlement, Stericycle agreed to notify
the Justice Department and states of Missouri and Nebraska
before it acquires any business involved in collecting
and treating infectious waste in the four states.