11.17.2008 5:58 pm
S&P index replaces beer with medical waste
St. Louis Post-Dispatch
Here’s another sign that the Inbev acquisition of Anheuser-Busch is moving close to completion: Standard & Poor’s has named a replacement for A-B in the closely watched S&P 500 Index. The index newcomer will be Stericycle, a medical-waste company based in Lake Forest, Ill.
The switch will reduce the S&P 500’s market capitalization by about $45 billion, but it will increase the index’s price-earnings ratio. Investors value Stericycle at about 35 times earnings, according to Bloomberg, vs. 22 times earnings for A-B.
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David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page. 
