Medical waste handling deal goes ahead after antitrust clearance

NEWS IN BRIEF — Posted Dec. 21, 2009

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Stericycle Inc., the country's largest provider of infectious waste collection and treatment, announced Dec. 7 that its $182.5 million purchase of MedServe Inc. would go forward. MedServe is the second-largest player in this industry.

The deal was first announced May 9, but the Justice Dept.'s Antitrust Division would not allow it to proceed unless MedServe sold to other buyers several facilities in Kansas, Missouri, Nebraska and Oklahoma. In addition, for the next decade, Stericycle is required to notify relevant government bodies before acquiring any other businesses engaged in the collection and processing of infectious waste in those states.

"Without the divestitures required by the department, critical health care facilities in Kansas, Missouri, Nebraska and Oklahoma would have faced higher prices," said Christine A. Varney, assistant attorney general in charge of the Justice Dept.'s Antitrust Division.

Stericycle's sales in 2008 were $858 million. MedServe's annual revenues were $35.6 million. The deal is expected to be completed by year's end.

Note: This item originally appeared at

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