GFL Environmental divests operations in 3 US markets

GFL Environmental Inc., Vaughn, Ontario, has divested solid waste operations in Colorado and New Mexico as well as in Nashville, Tennessee, in two separate transactions.

Phoenix-based Republic Services acquired GFL Environmental’s operations in Colorado and New Mexico in a deal that closed June 1. According to a press release from Republic Services, that deal includes GFL’s recycling, collection and disposal assets in four Colorado markets—Denver, Colorado Springs, Durango and Cañon City—as well as the Bloomfield, New Mexico, market.

“We look forward to delivering exceptional customer service to these new commercial and residential customers and welcome our new employees to the Republic team,” says Ryan Lawler, area president for the Northwest region at Republic Services. “This transaction reinforces our commitment to our Colorado and New Mexico communities.”

According to a press release from GFL Environmental, the company closed the sale of its Nashville operations May 1. GFL did not respond to the Recycling Today Media Group regarding thecompany that has acquired its Nashville operations.

GFL also is in the process of divesting its solid waste operations in Pennsylvania, Maryland and Delaware to Casella Waste Systems. The company says it has received clearance from the U.S. Department of Justice under the Hard-Scott-Rodino Antitrust Improvements Act of 1976, as amended, regarding this transaction. GFL is scheduled to close that deal June 30. 

“I am very pleased to announce the completion of the sale of these three U.S. solid waste regions, one fiscal quarter ahead of plan,” says Patrick Dovigi, founder and CEO of GFL.

According to GFL, these divested assets represent approximately CA$450 million of revenue, CA$120 million of adjusted earnings before interest, taxes, depreciation and amortization and CA$30 million of capital expenditures on an annualized basis.

Dovigi says these transactions will result in gross proceeds of more than CA$1.6 billion and are expected to be on GFL’s balance sheets June 30.

“The net proceeds from the transactions will allow us to exit the second quarter with net leverage between 4.3x and 4.4x and reduce net leverage to below 3.99x by year end, positioning us well for future upgrades to our credit ratings as well as sustainable industry leading free cash flow per share growth over the medium term,” Dovigi says. “These divestitures complete our portfolio rationalization plan. We believe our network of assets and market selection position us for high-quality, organic profitability growth, and we remain focused on our M&A strategy of densifying our existing footprint across Canada and the United States through our robust acquisition pipeline.”