Medical waste services company Stericycle Inc. received approval for its purchase of smaller rival MedServe, but will have to sell some of MedServe's businesses as part of a deal with regulators.
The agreement with the U.S. Department of Justice, as well as the states of Missouri and Nebraska, paves the way for Stericycle to complete the deal by the end of this year. The company said it will pay MedServe $182.5 million instead of $185 million, and will sell a sterilization facility in Kansas, four transfer stations, and some large customer accounts and assets related to those facilities.
The Justice Department said the original deal, which was struck in May, would have significantly reduced competition and lead to higher prices and reduced services in Kansas, Missouri, Nebraska, and Oklahoma. The transfer stations are located in those four states.
The antitrust division and the attorneys general of Missouri and Nebraska had contested the sale. As part of the settlement, Stericycle agreed to notify the Justice Department and the states of Missouri and Nebraska before it acquires any business involved in collecting and treating infectious waste in the four states.