10.1.2003: Meldung: Stericycle, Inc.: Acquisition of Scherer Healthcare completed
LAKE FOREST, Ill.--Jan. 9, 2003-- Stericycle, Inc. (Nasdaq:SRCL - News) today announced that it had completed its acquisition of Scherer Healthcare, Inc. for $41.5 million in cash, pursuant to a merger agreement approved by Scherer"s stockholders at a special meeting on January 7, 2003. The net purchase price was $26.0 million, after adjusting for Scherer"s cash. As a result of the merger, Scherer has become a wholly owned subsidiary of Stericycle.
Mark Miller, President and CEO of Stericycle, said, "This previously-announced transaction represents an important expansion by Stericycle into directly related business lines which complement our current services. We believe we can take advantage of our nationwide presence in hospitals and other healthcare providers to successfully expand Scherer"s proprietary reusable sharps management program."
Scherer operates two business lines: (i) consumer healthcare products, and (ii) waste management services, which focuses principally on containment, control, collection and processing of sharp-edged medical waste or "sharps." Scherer"s reusable sharps programs are marketed through its Bio Systems subsidiaries in 10 Northeastern and Mid-Atlantic states plus the District of Columbia.
Concurrent with the closing of the Scherer Healthcare transaction, Stericycle announced that it had entered into voluntary assurance agreements with the Commonwealth of Massachusetts and the State of Connecticut to conclude their review of Stericycle"s proposed merger with Scherer. Pursuant to the substantially identical agreements, which became effective upon the closing of the merger, Stericycle agreed to sell a medical waste transfer station in Haverhill, Massachusetts that it acquired from Scherer. In addition, Stericycle agreed to continue to provide access to Stericycle transfer and disposal facilities to certain New England based medical waste collectors and to provide notice to the Attorneys General of Massachusetts and Connecticut of certain future acquisitions.
Stericycle"s President and CEO, Mark Miller stated, "We are pleased to have quickly concluded the review of the Scherer transaction with an agreement that will have no material impact on the benefits and advantages Stericycle anticipates realizing from this acquisition."
The Company also announced that it has reached a definitive settlement in a previously announced antitrust investigation by the Utah Attorney General"s office relating to Stericycle"s December 1997 sale and purchase of medical waste assets in Utah and Arizona with Browning-Ferris Industries, Inc. ("BFI") and the interruption of treatment services provided to certain third-party haulers of medical waste at Stericycle"s treatment facilities in Arizona and Utah.
Under the terms of a Consent Decree, to be filed in court, Stericycle has agreed to pay a total of $580,000 in three annual installments. Stericycle has also agreed to make certain operational changes in Utah to enhance competition, including providing incineration treatment services to third-party haulers at Stericycle"s Salt Lake City treatment facility.
The Consent Decree will expressly state that Stericycle does not admit that it has violated any Utah or federal antitrust laws.
Stericycle"s President and CEO, Mark Miller, said, "Throughout the investigation, we have consistently maintained that Stericycle did not violate any federal or Utah antitrust statutes. We have agreed to settle the Utah investigation in order to avoid the expense of vindicating our position and to eliminate the uncertainty of outcome in the event of litigation. As previously stated, the terms of the Utah settlement have been adequately reserved and will not materially impact Stericycle"s business or financial condition."
Stericycle offers medical waste, training and compliance services nationally, servicing over 283,000 customers.
Cynthia Martin, 312/640-6741 (media)
Leslie Loyet, 312/640-6672 (investors)
Source: Stericycle, Inc.