GFL completes sale of Environmental Services business valued at $8 billion
GFL will use the proceeds to repay debt and reinvest in solid waste growth initiatives
Brown Gibbons Lang & Company (BGL), acted as the financial advisor for the sale of GFL Environmental's Environmental Services business to funds managed by affiliates of Apollo and BC Partners for an enterprise value of $8 billion.
GFL is the fourth largest diversified environmental services company in North America. Through its platform of facilities across Canada and more than half of all U.S. states, the company provides solid waste management with more than 15,000 employees.
How GFL will use the proceeds of the sale
GFL expects to use the proceeds from the sale to repay debt, making up to $2.25 billion available for the repurchase of GFL shares, subject to market conditions, and the balance for transaction fees and general corporate purposes. The sale allows GFL to accelerate its balance sheet deleveraging with a path to investment grade levels, deploy incremental capital across organic growth initiatives and solid waste M&A, and return of capital to shareholders through share repurchases and future dividend increases.
Pursuant to the transaction agreement, GFL will retain a 44 percent equity interest in the Environmental Services business, and the Apollo Funds and BC Funds will each hold a 28 percent equity interest.
Earlier this year, GFL shared news of the sale being initiated, along with a reported revenue increase of 11.1 percent in just the second quarter of 2024. The valuation of $8 billion significantly exceeded the company's expectations and will allow it to grow the business in the future.
