GFL completes sale of its Environmental Services business

GFL Environmental Inc., an Ontario-based waste management company, has announced it has closed the sale of its Environmental Services business for an enterprise value of CA$8 billion ($5.6 billion). GFL sold a majority stake in the business to funds managed by affiliates of Apollo and BC Partners, and retained a CA$1.7 billion ($1.2 billion) equity interest in the business.

Brown, Gibbons, Lang & Co. Securities Inc.'s (BGL's) Environmental investment banking team served as GFL's financial advisor in the transaction along with J.P. Morgan Securities LLC. Latham & Watkins LLP and Stikeman Elliott LLP served as legal counsel to GFL in connection with the transaction. Canaccord Genuity Corp. served as independent financial advisor, and Cassels Brock & Blackwell LLP served as legal counsel to the special committee in connection with the transaction, while Sidley Austin LLP served as legal counsel to the Apollo Funds in the United States, Kirkland & Ellis LLP served as legal counsel to BC Partners in the United States and Osler, Hoskin & Harcourt LLP served as legal counsel to the Apollo Funds and BC Partners in Canada.

The company says it intends to use up to CA$3.76 billion ($2.6 billion) of the net proceeds from the transaction to repay debt, making available up to CA$2.25 billion ($1.6 billion) for share repurchases, 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, according to BGL. 

Headquartered in Vaughan, Ontario, GFL is the fourth largest diversified environmental services company in North America, providing solid waste management services through its platform of facilities across Canada and in more than half of the U.S. states.

GFL employes more than 15,000 employees across its organization.