Stericycle Completes Divestiture of Communication Solutions Business to Carenet Health
BANNOCKBURN, Ill., Dec. 01, 2022 (GLOBE NEWSWIRE) -- Stericycle, Inc. (Nasdaq: SRCL), a leading provider of regulated medical waste management and secure information destruction solutions, announced today that it has completed the divestiture of its Communication Solutions business to Carenet Health, one of the healthcare industry’s leading consumer engagement and telehealth partners, for approximately $45 million in cash, subject to customary adjustments. Stericycle intends to use the net proceeds from the divestiture to pay down outstanding debt.
Stericycle Communication Solutions provides online scheduling, automated messaging and strategic inbound and outbound call center services to drive patient access, action and adherence. For the nine months ended September 30, 2022, the Communication Solutions business had revenues of approximately $45 million, reported in the North America segment, as part of Regulated Waste and Compliance Services revenues. In connection with the closing, Stericycle and Carenet Health entered into a purchase and transition services agreements. The divested business includes approximately 500 team members in North America.
“The sale of Stericycle Communication Solutions demonstrates our continued commitment to deliver on our portfolio optimization key business priority, marking our eleventh divestiture since 2019. By further streamlining our company, we are taking another step in our journey to focus on our core businesses and improve sustainable operational efficiencies,” said Cindy J. Miller, chief executive officer of Stericycle. “I would like to thank our team members transitioning to Carenet Health and wish them much success as they work to deliver better experiences and outcomes across the patient journey."
BofA Securities acted as the financial advisor to Stericycle with respect to the transaction to divest the Communication Solutions business and Latham & Watkins acted as legal advisor.
About Carenet Health
Carenet Health is one of the healthcare industry’s leading consumer engagement and telehealth partners—providing consumer engagement, clinical support, virtual care and advocacy solutions on behalf of 250+ of the nation’s premier health plans, providers, health systems and Fortune 500 companies. One in four Americans have access to Carenet’s services. Carenet is headquartered in San Antonio, Texas, with additional office locations in New Mexico, Maine and the Philippines. Visit carenethealth.com.
About Stericycle
Stericycle, Inc., (Nasdaq: SRCL) is a U.S. based business-to-business services company and leading provider of compliance-based solutions that protects people and brands, promotes health and well-being, and safeguards the environment. Stericycle serves customers in the U.S. and 16 countries with solutions for regulated waste and compliance services and secure information destruction. For more information about Stericycle, please visit www.stericycle.com.
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Stericycle, Inc.
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Safe Harbor:
This document may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. When we use words such as “believes”, “expects”, “anticipates”, “estimates”, “may”, “plan”, “will”, “goal”, or similar expressions, we are making forward-looking statements. Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of our management about future events and are therefore subject to risks and uncertainties, which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Factors that could cause such differences include, among others, inflationary cost pressure in labor, supply chain, energy, and other expenses, decreases in the volume of regulated wastes or personal and confidential information collected from customers, the ability to implement the remaining phases of our ERP system, and disruptions resulting from deployment of our ERP system, disruptions in our supply chain, disruptions in or attacks on information technology systems, labor shortages, a recession or economic disruption in the U.S. and other countries resulting from the COVID-19 virus or otherwise, changing market conditions in the healthcare industry, competition and demand for services in the regulated waste and secure information destruction industries, SOP pricing volatility, foreign exchange rate volatility in the jurisdictions in which we operate, changes in governmental regulation of the collection, transportation, treatment and disposal of regulated waste or the proper handling and protection of personal and confidential information, the level of government enforcement of regulations governing regulated waste collection and treatment or the proper handling and protection of personal and confidential information, charges related to portfolio optimization or the failure of acquisitions or divestitures to achieve the desired results, failure to consummate transactions with respect to non-core businesses, the obligations to service substantial indebtedness and comply with the covenants and restrictions contained in our credit agreements and notes, rising interest rates or a downgrade in our credit rating resulting in an increase in interest expense, political, economic, inflationary and other risks related to our foreign operations, developments in the COVID-19 pandemic and the resulting impact on the results of operations, long-term remote work arrangements which may adversely affect our business, measures taken by governmental authorities to prevent the spread of the COVID-19 virus which could disrupt our supply chain, result in disruptions in transportation services and restrictions on the ability of our team members to travel, result in temporary closure of our facilities or the facilities of our customers and suppliers, affect the volume of paper processed by our secure information destruction business and the revenue generated from the sale of SOP, weather and environmental changes related to climate change, requirements of customers and investors for net carbon zero emissions strategies, and the introduction of regulations for greenhouse gases, which could negatively affect our costs to operate, the outcome of pending, future or settled litigation or investigations including with respect to the U.S. Foreign Corrupt Practices Act and foreign anti-corruption laws, failure to maintain an effective system of internal control over financial reporting, as well as other factors described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Forms 10-Q. As a result, past financial performance should not be considered a reliable indicator of future performance, and investors should not use historical trends to anticipate future results or trends. We disclaim any obligation to update or revise any forward-looking or other statements contained herein other than in accordance with legal and regulatory obligations.
