Stericycle Acquires PSC Environmental Services

(RTTNews) - Stericycle, Inc. (SRCL) said Tuesday that it has acquired PSC Environmental Services, LLC, a portfolio company of Lindsay Goldberg LLC and a provider of environmental and regulated waste management solutions.

Subject to various adjustments, the total consideration for the PSC Environmental acquisition was $275 million, of which $245 million was paid in cash and $30 million was paid by a two-year note. A portion of the cash payment was applied to pay PSC Environmental's indebtedness as of the closing date.

PSC Industrial Services, also owned by Lindsay Goldberg, was not part of the deal and will continue to operate as part of PSC Holdings.

The acquisition will strengthen Stericycle's infrastructure and enhance the company's service offerings to its healthcare, retail and other regulated waste customers. PSC Environmental's services will be integrated into Stericycle's portfolio of compliance offerings, combining market-leading solutions with expanded sales, operational and regulatory expertise.

Stericycle's acquisition of PSC Environmental is expected to add about $240 million in annualized revenues. The company anticipates that it will take 12 months to fully integrate the acquisition and that it will be accretive at that time by $0.10 to 0.12 per share prior to any adjustment for deal or integration expenses. For the remainder of 2014, the deal is anticipated to be accretive by about $0.03 to $0.04 per share prior to any adjustment for deal or integration expenses.