The U.S. Justice Department’s Antitrust Division will require medical-waste handler MedServe, Bellaire, Texas, to divest collection and treatment services in Kansas, Missouri, Nebraska and Oklahoma before allowing a $182.5 million acquisition by Stericycle, Lake Forest, Ill.
MedServe must divest before Stericycle deal can proceed
The government filed an antitrust complaint and proposed settlement agreement in U.S. District Court in Washington. The deal as originally proposed, the Justice Department said in a news release, “would significantly lessen” competition for medical-waste disposal in the four states, where Stericycle and MedServe are the only companies available to large producers of infectious waste.
Under the agreement, the covered MedServe assets must be sold to a buyer approved by the department. The agreement also calls for Stericycle to notify the Justice Department before buying any additional medical waste business in those states in the next 10 years.
The purchase price has accordingly been reduced from $185 million, Stericycle said in a news release. The company, which reported profit of $485 million on revenue of $1.1 billion in 2008, expects to close the transaction before the end of 2009.
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