BGL Announces the Sale of GFL's Environmental Services Business Valued at $8 Billion

Rhea-AI Summary

GFL Environmental Inc. (NYSE: GFL) has announced the sale of its Environmental Services business to Apollo (NYSE: APO) and BC Partners funds for $8 billion. The transaction structure allows GFL to maintain a 44% equity interest, while Apollo Funds and BC Funds will each hold 28%.

The proceeds will be strategically allocated to:

• Debt repayment
• Up to $2.25 billion for share repurchases
• Transaction fees and general corporate purposes

This strategic move enables GFL, North America's fourth-largest diversified environmental services company, to accelerate its balance sheet deleveraging toward investment grade levels, pursue organic growth initiatives, and implement solid waste M&A opportunities. The company also plans to enhance shareholder returns through share repurchases and future dividend increases.

Positive

• Sale transaction valued at $8 billion
• Retains significant 44% equity stake in the business
• $2.25 billion allocated for share repurchases
• Accelerated path to investment grade debt levels
• Future dividend increases planned

Negative

• Reduction in full ownership control of Environmental Services division

The transaction will allow GFL to pursue organic growth initiatives and solid waste M&A opportunities

CLEVELAND, March 3, 2025 /PRNewswire/ -- Brown Gibbons Lang & Company (BGL), a leading independent investment bank and financial advisory firm, is pleased to announce GFL Environmental Inc. (NYSE: GFL) (GFL), the fourth-largest diversified environmental services company in North America, has sold its Environmental Services business to funds managed by affiliates of Apollo (NYSE: APO) (Apollo Funds) and BC Partners (BC Funds) for an enterprise value of $8 billion. BGL's Environmental investment banking team served as GFL's financial advisor in the transaction.

BGL's Environmental investment banking team served as GFL's financial advisor in the transaction.

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. Across its organization, GFL has a workforce of more than 15,000 employees.

GFL expects to use the proceeds from the sale to repay debt, making available up to $2.25 billion for the repurchase of GFL shares, 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.

Pursuant to the transaction agreement, GFL will retain a 44% equity interest in the Environmental Services business, and the Apollo Funds and BC Funds will each hold a 28% equity interest.

BGL's Environmental Services & Infrastructure investment banking team has been ranked #1 in Environmental Services transaction volume in North America since 2016, according to Pitchbook.com. Our Environmental team focuses on businesses that perform essential services to the waste processing & disposal, water & wastewater treatment, waste-to-value, and waste-to-energy markets.

All financial information is in Canadian dollars unless otherwise noted.

About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, capital markets, financial restructurings, business valuations and opinions, and other strategic matters. BGL has investment banking offices in Boston, Chicago, Cleveland, Los Angeles, and New York, and real estate offices in Chicago, Cleveland, and San Antonio. The firm is also a founding member of REACH Cross-Border Mergers & Acquisitions, enabling BGL to service clients in more than 30 countries around the world. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, LLC, an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC. For more information, please visit www.bglco.com. 

View original content to download multimedia:https://www.prnewswire.com/news-releases/bgl-announces-the-sale-of-gfls-environmental-services-business-valued-at-8-billion-302390548.html

SOURCE Brown Gibbons Lang & Company

FAQ

What is the value of Apollo's acquisition of GFL's Environmental Services business?

The transaction is valued at $8 billion, with Apollo Funds and BC Partners each acquiring 28% equity stake, while GFL retains 44%.

How will GFL use the proceeds from the $8 billion Environmental Services sale?

GFL will use proceeds for debt repayment, allocate up to $2.25 billion for share repurchases, and the remainder for transaction fees and corporate purposes.

What ownership structure results from Apollo's acquisition of GFL's Environmental Services?

GFL retains 44% equity interest, while Apollo Funds and BC Partners will each hold 28% equity interest in the Environmental Services business.

How will the Apollo (APO) acquisition impact GFL's financial strategy?

The sale will accelerate GFL's balance sheet deleveraging to investment grade levels and enable organic growth, M&A opportunities, and increased shareholder returns.