JANUARY 2010

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.