Canadian document shredding company, Shred-it International Inc., scratched its plans of an initial public offering and instead on Tuesday agreed to be acquired by medical waste management firm Stericycle Inc. (SCRL) for $2.3 billion in an all-cash transaction. For the Forest Lake, Ill.-based Stericycle the acquisition expands its business into the secure information destruction market as well as expands its geographic reach across North America. ‘This acquisition marks another exciting milestone for Stericycle,’ said Stericycle CEO Charlie Alutto in a statement Tuesday. ‘By combining Shred-it with our business-to-business compliance solutions, we are providing the marketplace with a broader portfolio of services…we believe that Shred-it represents one of the most attractive opportunities for our business that we have ever seen.’ The combined company is expected to earn an Ebitda of more than $1 billion in 2016, according to the statement. Stericycle expects the purchase to be accretive to its cash Earnings-Per-Share (EPS) by at least 10% in 2016 and expects that number to increase to the mid-to-high teens by 2018. Stericycle also expects the transaction to result in a tax benefit of $150 million.
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