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posted: 2/8/2020 1:00 AM

Stericycle sell environmental solutions business for $462.5M

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Daily Herald Staff Report

Stericycle said Friday it will sell most of its Domestic Environmental Solutions business to Harsco Corp. for $462.5 million in an all-cash deal.

The sale includes Stericycle's manufacturing and industrial services and the retail portion of hazardous waste services, which together employ approximately 2,000 team members across 61 facilities. Bannockburn-based Stericycle will retain its business for unused consumer pharmaceutical take-back services, and provide hazardous waste services to health care customers, the company said in a statement. Harsco will provide transportation and disposal services to health care customers under a long-term service agreement following the sale. Pennsylvania-based Harsco is a global provider of environmental solutions for the rail industry. The 11,000-employee company operates in more than 30 countries.

Stericycle CEO Cindy J. Miller said the sale will help the company improve its financial picture as well as pay down outstanding debt.

"As a focused provider of environmental solutions in the U.S., Harsco is well-positioned to drive this business forward, and we are confident this transaction is in the best interest of Stericycle and our shareholders, our customers and team members," Miller said.

The sale is expected to close in the first quarter of 2020,

Stericycle also announced that it completed the sale of its operations in Chile in December to an affiliate of Veolia for approximately $30.7 million, marking the fifth divestiture of its businesses last year. The company also sold a texting business based in the U.K., a telephone answering services business in North America, a pharmaceutical returns business, and substantially all its operations in Mexico, generating approximately $83.7 million in gross proceeds.