Yahoo Finance Stericycle Completes Sale of Domestic Environmental Solutions
Stericycle, Inc.SRCL yesterday announced that it has completed the divestiture of the Domestic Environmental Solutions business to Harsco Corporation HSC for nearly $462.5 million in cash. The deal was initially announced on Feb 7, 2020.
Deal Details & Benefits
The deal includes Stericycle’s Manufacturing and Industrial Services and the retail portion of Hazardous Waste Services, which together employ nearly 2,000 team members across 61 facilities.
Operations of Stericycle’s regulated medical waste and secure information destruction businesses will not be hampered by this sale. The company plans to utilize the net proceeds from the sale to pay off its outstanding debt.
The company will continue offering solutions for unused consumer pharmaceutical take-back services and provide hazardous waste services to healthcare customers as an integrated services provider. Also, it has subcontracted with Harsco to perform hazardous waste services, which includes collection, transportation and disposal as per requirements.
Notably, Cindy J. Miller, CEO of Stericycle, stated, "The sale of the Domestic Environmental Solutions business is the sixth divestiture we have completed over the last 15 months and demonstrates important progress in our transformation as we focus on our core business, reduce debt, enhance our balance sheet flexibility, and drive long-term shareholder value.”
Previously, as part of the portfolio rationalization strategy within Business Transformation, Stericycle completed five divestitures — operations in Chile, the U.K.-based texting business, the North American telephone answering services business, a retail pharmaceutical returns business and all of its Mexican operations — in 2019. Overall, the company earned almost $83.7 million in gross proceeds from these transactions during 2019.
Zacks Rank & Stocks to Consider
Currently, Stericycle carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton BAH and Charles River Associates CRAI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term expected EPS (three to five years) growth rate for Booz Allen Hamilton and Charles River Associates is 11.9% and 13%, respectively.
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