Stericycle: Acquisition by Waste Management Boosts Recycling Capabilities
Deal News | Dec 02, 2024 | EIN
In 2024, the recycling industry experienced a significant amount of mergers and acquisitions, highlighting the strategic importance of the circular economy. Notable transactions include Waste Management's $7.2 billion acquisition of Stericycle, diversifying its offerings into medical waste and secure information destruction services. EQT Private Equity's acquisition of a majority stake in AMCS is also remarkable, as the SaaS platform's growth is aimed at aiding resource-intensive industries to transition to a circular economy. In a similar stride, Dow acquired Circulus to enhance its plastics recycling capabilities, underlining its commitment to sustainable industrial ecosystems. Meanwhile, Terex's acquisition of Environmental Solutions Group from Dover Corporation signifies a $2 billion investment into expanding its environmental solutions segment. These transactions illustrate a broader trend of increased corporate investment in sustainability and the circular economy, bolstered by governmental mandates and market opportunities. Additionally, acquisitions by companies such as Greyparrot, Interstate Waste Services, and TerraCycle further enhance the recycling market by integrating advanced AI and comprehensive recycling solutions to boost efficiency and sustainability.
Sectors
- Recycling
- Private Equity
- SaaS
Geography
- United States – Many of the transactions, such as those involving Waste Management, Dow, and Terex, have key components and ramifications within the U.S. market.
- Canada – Heraeus's acquisition of McCol Metals, a Canadian company, involves operations in Canada, specifically St. John's, Newfoundland, and Labrador.
- Europe – EQT Private Equity's stake in AMCS indicates European private equity activities influencing the global recycling industry.
Industry
- Recycling – The central theme of the article revolves around recycling and waste management, with various companies engaging in transactions to enhance their recycling capabilities.
- Private Equity – EQT Private Equity's involvement in acquiring AMCS indicates the role of private equity in facilitating growth and sustainability within the industry.
- SaaS – AMCS's SaaS platform supporting resource-intensive industries highlights the importance of software services in driving efficiency and sustainability.
Financials
- $7.2 billion – The acquisition price paid by Waste Management for Stericycle.
- $2 billion – The cash transaction amount for Terex's acquisition of Environmental Solutions Group.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Waste Management | Acquirer | Company | Waste Management acquired Stericycle as part of a strategy to expand its service offerings in medical waste and information destruction. |
| Stericycle | Target | Company | Stericycle provides regulated medical waste and compliance services, specializing in secure information destruction. |
| EQT Private Equity | Investor | Company | EQT Private Equity acquired a majority stake in AMCS, supporting its software-driven circular economy solutions. |
| AMCS | Target | Company | AMCS offers a SaaS platform aiding resource-intensive industries with ERP, recycling, and sustainability solutions. |
| Dow | Acquirer | Company | Dow acquired Circulus to advance its recycling efforts in polyethylene, enhancing its commitment to sustainability. |
| Circulus | Target | Company | Circulus specializes in polyethylene recycling with facilities in Oklahoma and Alabama. |
| Terex Corporation | Acquirer | Company | Terex acquired Environmental Solutions Group to establish an environmental solutions segment. |
| Environmental Solutions Group | Target | Company | ESG designs and manufactures refuse collection vehicles and waste compaction equipment. |
| Heraeus | Acquirer | Company | Heraeus acquired McCol Metals to enhance its operations in recycling iridium from mixed metal oxide electrodes. |
| McCol Metals | Target | Company | McCol Metals specializes in the recycling of iridium from spent electrodes. |