Sharps Compliance Acquires Midwest Medical Waste Expanding its Route Based Services and Footprint in Kansas

Rhea-AI Summary

Sharps Compliance Corp. (NASDAQ: SMED) announced the acquisition of Midwest Medical Waste, Inc. for $4.35 million, comprising 75% cash and 25% stock. This acquisition enhances Sharps' route density and market reach in medical waste management in Kansas, where Midwest services over 600 customer locations. CEO David P. Tusa highlighted the strategic alignment with their growth initiatives and expressed confidence in the acquisition contributing to an enhanced market position. The deal marks the start of 2022 for Sharps, with a focus on evaluating further acquisition opportunities.

Positive

• Acquisition price of $4.35 million enhances growth opportunities.
• Increases route density and market coverage in Kansas.
• Midwest Medical Waste has a strong customer reputation.

Negative

• None.

HOUSTON, Feb. 07, 2022 (GLOBE NEWSWIRE) -- Sharps Compliance Corp. (NASDAQ: SMED) (“Sharps” or the “Company”), a leading full-service national provider of comprehensive waste management solutions including medical, pharmaceutical and hazardous, today announced the acquisition of Midwest Medical Waste, Inc., a full-service, route-based provider of medical and hazardous waste solutions serving over 600 customer locations across Kansas. The purchase price was $4.35 million and consisted of 75% in cash and 25% in Sharps Compliance stock.

David P. Tusa, President and Chief Executive Officer of Sharps, stated, “Our acquisition of Midwest Medical Waste of Kansas aligns well with our strategy to augment our organic growth initiatives with complementary acquisitions that increase our route density and extend our reach in the marketplace. Midwest Medical Waste has established a strong reputation as a customer focused medical waste management provider in Kansas. We believe this acquisition will enhance our route-based coverage and capabilities in Kansas and further our overall leadership position as a comprehensive provider of medical waste management solutions.”

Tusa added, “We have a vibrant pipeline of acquisition opportunities in various stages that we are evaluating. We are pleased to kick off calendar 2022 with the addition of Midwest Medical Waste of Kansas.”

About Sharps Compliance Corp.

Headquartered in Houston, Texas, Sharps Compliance (NASDAQ: SMED) is a leading business-to-business services provider to the healthcare, long-term care and retail pharmacy markets. Sharps Compliance offers comprehensive solutions for the management of regulated medical waste, hazardous waste and unused medications. For more information, visit: www.sharpsinc.com. 

Forward-Looking Statements

The information made available in this news release contains certain forward-looking statements relating to the Company that are based on the beliefs of the Company’s management as well as assumptions made by and information currently available to the Company’s management. When used in this document, the words "may," “position,” "plan," “potential,” “designed,” “continue,” "anticipate," "believe," "expect," "estimate," “project,” and “intend” and words or phrases of similar import, as they relate to the Company or its subsidiaries or Company management, are intended to identify forward-looking statements. Such statements reflect the known and unknown   risks, uncertainties and assumptions related to certain factors including, without limitation, competitive factors, general economic conditions, customer relations, relationships with vendors, governmental regulation and supervision, seasonality, distribution networks, product introductions and acceptance, technological change, changes in industry practices, onetime events and other factors described herein including the impact of the coronavirus COVID-19 (“COVID-19”) pandemic on our operations and financial results. Based upon changing conditions, should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the Company’s Quarterly Reports on Form 10-Q, our Annual Report on Form 10-K, and our other filings with the Securities and Exchange Commission. Actual results may vary materially. You are cautioned not to place undue reliance on any forward-looking statements. You should also understand that it is not possible to predict or identify all such factors and as such should not consider the preceding list or the risk factors to be a complete list of all potential risks and uncertainties. The Company does not intend to update these forward-looking statements.

For more information contact:

Diana P. Diaz Sharps Compliance Corp. Executive Vice President and Chief Financial Officer Phone: (713) 660-3547 Email: ddiaz@sharpsinc.com

John Nesbett/Jennifer Belodeau IMS Investor Relations Phone: (203) 972-9200 Email: jnesbett@institutionalms.com

FAQ

What is the acquisition value of Midwest Medical Waste by Sharps Compliance?

The acquisition value is $4.35 million.

How will the acquisition of Midwest Medical Waste impact Sharps Compliance's operations?

The acquisition will enhance Sharps' route density and market reach in Kansas.

What percentage of the acquisition price was paid in cash and stock?

The acquisition was paid with 75% in cash and 25% in Sharps Compliance stock.

What markets does Sharps Compliance serve?

Sharps Compliance serves the healthcare, long-term care, and retail pharmacy markets.

What strategic benefits does Sharps Compliance expect from the acquisition?

Sharps expects improved market presence and growth from the acquisition.