GFL Environmental announces closing of WCA Waste Corp. acquisition

GFL Environmental Inc., Vaughan, Canada, has announced the successful closing of the acquisition of WCA Waste Corp., Houston, Texas. The purchase price for the acquisition was partly funded with the net proceeds from the previously announced private placement of $600 million of perpetual convertible preferred shares to funds managed by HPS Investment Partners LLC, New York City, which also closed today.

Patrick Dovigi, the founder and CEO of GFL, said, "This transaction represents an exciting time for our employees, customers, shareholders and other stakeholders. As a result of the closing today of the WCA acquisition, we now operate in nine provinces across Canada and 27 states in the United States. After more than a year of working on this transaction, we are ready to implement our integration plans and focus on growing the business."

Dovigi continued, "I also want to acknowledge the significant investment today by HPS, a long-standing partner of GFL that continues to support our strategy of pursuing strategic and accretive acquisitions to create long-term shareholder value."

Pursuant to the terms of the private placement, HPS has subscribed for 28,571,428 preferred shares for gross proceeds of $600 million, according to a release on the acquisition. The preferred shares are initially convertible into 23,809,524 subordinate voting shares of the company, representing approximately 6.8 percent of the issued and outstanding subordinate voting shares and 5.2 percent of the outstanding voting rights attached to the company's shares and based on a conversion price of $25.20 per share.