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Stericycle (SRCL) Closes Global Product Recall Business Sale

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Stericycle, Inc. (SRCL - Free Report) recently announced that it has completed the divestiture of its global product recall business (Expert Solutions) to Sedgwick. The divested business includes nearly 315 team members and seven facilities in the United States, United Kingdom and Canada.

The sale reflects Stericycle’s efforts to streamline its core businesses. The company is focused on driving top-line growth and improving operational efficiencies. The company plans to utilize the net proceeds from the sale to pay off its outstanding debt.

Notably, Cindy J. Miller, chief executive officer at Stericycle, stated, “The sale of Expert Solutions demonstrates our continued commitment to deliver on our key business priorities.” She further added, “I would like to thank our team members transitioning to Sedgwick. We are confident that Sedgwick will ensure continued quality of service for customers.”

Previously, as part of the portfolio rationalization strategy within Business Transformation, Stericycle completed seven divestitures — the Argentina business and Domestic Environmental Solutions business in 2020; operations in Chile, the U.K.-based texting business, the North American telephone answering services business, a retail pharmaceutical returns business and its Mexico operations in 2019.

So far this year, shares of Stericycle have gained 9.2% against 11.8% decline of the industry it belongs to.

 

Zacks Rank and Stocks to Consider

Stericycle currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are Heidrick & Struggles International (HSII - Free Report) , Automatic Data Processing (ADP - Free Report) and Insperity (NSP - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected earnings per share (three to five years) growth rate for Heidrick & Struggles International, Automatic Data Processing and Insperity is 10%, 12% and 15%, respectively.

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