GFL Environmental announced on Tuesday that it will sell its environmental services division in a deal worth $5.59bn.
The Canadian waste management company based in Vaughan, Ontario plans to use the proceeds to reduce debt and repurchase shares. The business will be sold to private equity firms Apollo and BC Partners.
GFL will retain a $1.18bn equity stake in the business, which contributed approximately 23% of its total revenue in the third quarter. Equally, Apollo and BC Partners will each hold a 28% share.
GFL CEO Patrick Dovigi said the transaction will “materially delever [their] balance sheet” and will allow them to achieve “an investment grade credit rating”.
Moreover, he said that the company, which currently holds $6.6bn in long-term debt, will retain an option to repurchase the business within five years of the deal’s closing. This is estimated to be in the first quarter of 2025.
Source: Reuters
Can’t stop reading? Read more
Blackstone taps bond market as private credit BDCs end issuance drought
Blackstone taps bond market as private credit BDCs end issuance drought Blackstone's private...
EQT raises the stakes with revised $12.3bn bid for Intertek
EQT raises the stakes with revised $12.3bn bid for Intertek EQT has tabled an improved takeover...
Temasek’s Azalea bets on evergreen structure to democratise private equity access
Temasek's Azalea bets on evergreen structure to democratise private equity access Azalea, a unit...