Stericycle Acquires PSC Environmental Services, No Details Disclosed

Stericycle, Inc. SRCL today announced that it has acquired PSC Environmental Services, LLC ("PSC Environmental"), a portfolio company of Lindsay Goldberg LLC and a leading provider of environmental and regulated waste management solutions. The transaction was completed following clearance from the U.S. Department of Justice under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Upon closing, PSC Environmental became a wholly-owned subsidiary of Stericycle. PSC Industrial Services, also owned by Lindsay Goldberg, was not part of the transaction 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. "PSC Environmental is a recognized industry leader and this acquisition is an exciting milestone," said Charlie Alutto, President and CEO of Stericycle. "By combining PSC Environmental with our regulated waste management solutions, we are providing the marketplace with a broader portfolio of services supported by an enhanced operational infrastructure. This acquisition is part of our ongoing effort to help companies protect their brands and safeguard the environment, and we look forward to further refining our offerings." "This is an exciting time for the employees of our Environmental Services Division as we are combining two outstanding teams," said Bruce Roberson, CEO, PSC Holdings. "The combination will benefit customers by combining the talents and strengths of both organizations with a focus on exceeding our customers' service expectations." Stericycle's acquisition of PSC Environmental is expected to add approximately $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 - 0.12 per share prior to any adjustment for transaction or integration expenses. For the remainder of 2014, the transaction is anticipated to be accretive by approximately $0.03 - $0.04 per share prior to any adjustment for transaction or integration expenses. 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.