GFL Environmental Inc., a prominent Canadian waste management company, announced on Tuesday its agreement with funds managed by affiliates of Apollo Global Management, LLC, and BC Partners to divest its Environmental Services division for a sum of C$8 billion. The transaction, anticipated to conclude in the first quarter, will see GFL maintaining a 44% equity stake in the Environmental Services sector, whereas Apollo Funds and BC Funds will each secure a 28% stake.
Consequently, GFL will hold a C$1.7 billion equity position in the Environmental Services business. The company estimates that it will net approximately C$6.2 billion in cash proceeds from the transaction, after accounting for the retained equity and tax obligations.
GFL intends to allocate up to C$3.75 billion of the net proceeds toward debt repayment, utilize up to C$2.25 billion for the repurchase of GFL shares, and cover transaction costs and other general corporate purposes.
