By Canadian Press

GFL Environmental selling majority stake in environmental services business

Jan 7, 2025 | 5:12 AM

VAUGHAN, Ont. — GFL Environmental Inc. has signed a deal to sell a majority interest in its environmental services business to private equity firms Apollo and BC Partners in an agreement that will see it realize $6.2 billion in cash proceeds.

Under the transaction, Apollo Funds and BC Funds will each hold a 28 per cent stake in the business, while GFL will retain a 44 per cent interest.

GFL Environmental Services provides industrial and waste management services.

GFL says it plan to use up to $3.75 billion of the net proceeds from the sale to repay debt and up to $2.25 billion for the repurchase of its shares.

The deal also gives GFL an option, but not an obligation, to repurchase the environmental services business within five years of the closing of the sale.

1000 Ways to Heal

1000 Ways to Heal: Secwepemcul'ew

Jan 06, 2025

Question of the Week

Are you happy with the way Justin Trudeau is resigning and proroguing parliament to clear the way for a new leader?

Jan 06, 2025

One Man's Opinion

COLLINS: Jimmy Carter was one of a kind

Jan 05, 2025

GFL Environmental chief executive Patrick Dovigi says the deal will allow the company to materially delever its balance sheet which will accelerate its path to an investment grade credit rating.

This report by The Canadian Press was first published Jan. 7, 2025.

Companies in this story: (TSX:GFL)

The Canadian Press