BGL Facilitates GFL’s $8 Billion Sale of Environmental Services Division

Transaction Overview

In a strategic move, Brown Gibbons Lang & Company (BGL) recently announced the successful sale of GFL Environmental Inc.'s Environmental Services business. Valued at a towering $8 billion, this transaction marks a significant milestone for GFL, a prominent player in North America's environmental services sector. The deal is expected to empower GFL to elevate its financial strategies and enhance growth opportunities.

Headquartered in Vaughan, Ontario, GFL stands as the fourth-largest diversified environmental services company in North America. With a robust workforce exceeding 15,000 employees, GFL offers solid waste management services throughout Canada and more than half of the United States. The sale involves a partnership with funds managed by Apollo and BC Partners, which will each hold a 28% equity interest in the environmental services division, allowing GFL to maintain a significant 44% stake in the business. Such a structure enables GFL to remain involved in its operations while still reaping the financial benefits from the transaction.

Financial Implications

Following the sale, GFL anticipates utilizing the proceeds to repay existing debt, facilitating a potential $2.25 billion for repurchasing shares, depending on market conditions. Ultimately, these funds will also cover transaction fees and support general corporate purposes. The overarching goal is to accelerate GFL's balance sheet cleanup, paving the way for an investment-grade rating. This financial maneuver is not just about debt relief but also sets the stage for further capital deployment into organic growth initiatives and potential mergers and acquisitions (M&A) opportunities within the solid waste sector.

The strategic divestment comes at a pivotal time when many companies are reassessing their operating models to streamline services and enhance profitability. As GFL aims to shed surplus liabilities, this transaction positions the company to deploy capital effectively towards growth drivers and to return value to its shareholders.

BGL played a crucial role in advising GFL throughout this transaction, and their Environmental Services & Infrastructure investment banking team is recognized as a leader in environmental services transaction volumes across North America, a title they have held since 2016. According to reports from Pitchbook.com, their expertise has positioned them at the forefront of notable environmental service transactions.

About GFL and BGL

GFL Environmental Inc. has a significant footprint in the industry, operating various facilities that tackle essential services such as waste processing, water treatment, and waste-to-energy solutions. GFL's philosophy centers on sustainability, aiming to contribute to a greener future through comprehensive waste management strategies.

Brown Gibbons Lang & Company, known as BGL, is a distinguished independent investment bank and financial advisory firm targeting global middle-market opportunities. With offices across several major cities, including Boston, New York, and Los Angeles, BGL specializes in strategic mergers and acquisitions while guiding corporations in their financial restructurings and capital market activities.

This sale showcases how firms like GFL and BGL are not just reacting to market conditions but are proactively shaping their futures. GFL's readiness to reinvest in organic growth and focus on shareholder returns exemplifies a forward-thinking approach in today’s ever-competitive landscape. As the company forges ahead, it looks set to remain an influential figure within the environmental services industry, leveraging both its resources and strategic partnerships to navigate future challenges.