The DOJ announced in November 2009 that it will require Stericycle Inc. to divest certain infectious waste collection and treatment services assets in order to proceed with its acquisition of MedServe Inc. The DOJ alleged that the transaction would have lessened competition in infectious waste collection and treatment services to hospitals and other critical healthcare facilities in Kansas, Missouri, Nebraska, and Oklahoma.
According to the complaint, Stericycle and MedServe are the only two firms able to compete for customers that generate large quantities of infectious waste in Kansas, Missouri, Nebraska and Oklahoma. Under the proposed settlement, Stericycle and MedServe are required to divest all of MedServe's assets primarily used in the provision of infectious waste collection and treatment services to large customers in those states to a viable purchaser approved by the Department. These assets include MedServe's Newton, KS, treatment facility, and its transfer stations in Kansas City, KS, Oklahoma City, OK, Omaha, NE,, and Booneville, MO.
The DOJ investigated the transaction along with the attorneys general of the states of Missouri and Nebraska.