BGL Announces the Sale of GFL's Environmental Services Business Valued at $8 Billion
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.
GFL Environmental Inc. (NYSE: GFL) ha annunciato la vendita della sua attività di Servizi Ambientali ad Apollo (NYSE: APO) e ai fondi BC Partners per 8 miliardi di dollari. La struttura della transazione consente a GFL di mantenere un 44% di partecipazione azionaria, mentre i fondi Apollo e BC deterranno ciascuno il 28%.
Il ricavato sarà allocato strategicamente a:
- Rimborso del debito
- Fino a 2,25 miliardi di dollari per riacquisti di azioni
- Commissioni di transazione e scopi aziendali generali
Questa mossa strategica consente a GFL, la quarta più grande azienda di servizi ambientali diversificati del Nord America, di accelerare il suo processo di riduzione del debito verso livelli di investimento di grado, perseguire iniziative di crescita organica e implementare opportunità di M&A nel settore dei rifiuti solidi. L'azienda prevede anche di migliorare i ritorni per gli azionisti attraverso riacquisti di azioni e futuri aumenti dei dividendi.
GFL Environmental Inc. (NYSE: GFL) ha anunciado la venta de su negocio de Servicios Ambientales a Apollo (NYSE: APO) y fondos de BC Partners por 8 mil millones de dólares. La estructura de la transacción permite a GFL mantener un 44% de participación accionaria, mientras que los fondos de Apollo y BC tendrán cada uno el 28%.
Los ingresos se asignarán estratégicamente a:
- Pago de deudas
- Hasta 2.25 mil millones de dólares para recompra de acciones
- Honorarios de transacción y propósitos corporativos generales
Este movimiento estratégico permite a GFL, la cuarta empresa de servicios ambientales diversificados más grande de América del Norte, acelerar su reducción de deuda hacia niveles de grado de inversión, perseguir iniciativas de crecimiento orgánico e implementar oportunidades de M&A en residuos sólidos. La empresa también planea mejorar los retornos para los accionistas a través de recompras de acciones y futuros aumentos de dividendos.
GFL Environmental Inc. (NYSE: GFL)는 Apollo (NYSE: APO)와 BC Partners 펀드에 80억 달러에 환경 서비스 사업을 매각한다고 발표했습니다. 거래 구조는 GFL이 44%의 지분을 유지할 수 있도록 하며, Apollo 펀드와 BC 펀드는 각각 28%를 보유하게 됩니다.
수익금은 전략적으로 다음과 같이 배분됩니다:
- 부채 상환
- 최대 22.5억 달러의 자사주 매입
- 거래 수수료 및 일반 기업 목적
이 전략적 조치는 GFL이 북미에서 네 번째로 큰 다각화된 환경 서비스 회사로서 투자 등급 수준으로의 재무 구조 개선을 가속화하고, 유기적 성장 이니셔티브를 추구하며, 고형 폐기물 M&A 기회를 실행할 수 있게 합니다. 회사는 또한 자사주 매입과 향후 배당금 인상을 통해 주주 수익을 향상시킬 계획입니다.
GFL Environmental Inc. (NYSE: GFL) a annoncé la vente de son activité de Services Environnementaux à Apollo (NYSE: APO) et aux fonds BC Partners pour 8 milliards de dollars. La structure de la transaction permet à GFL de conserver une participation de 44%, tandis que les fonds Apollo et BC détiendront chacun 28%.
Les produits seront alloués stratégiquement à :
- Remboursement de la dette
- Jusqu'à 2,25 milliards de dollars pour des rachats d'actions
- Frais de transaction et objectifs d'entreprise généraux
Ce mouvement stratégique permet à GFL, la quatrième plus grande entreprise de services environnementaux diversifiés en Amérique du Nord, d'accélérer la réduction de son endettement vers des niveaux de qualité d'investissement, de poursuivre des initiatives de croissance organique et de mettre en œuvre des opportunités de fusions et acquisitions dans le secteur des déchets solides. L'entreprise prévoit également d'améliorer les rendements pour les actionnaires grâce à des rachats d'actions et à de futures augmentations de dividendes.
GFL Environmental Inc. (NYSE: GFL) hat den Verkauf seines Geschäftsbereichs Umweltservices an Apollo (NYSE: APO) und die BC Partners-Fonds für 8 Milliarden Dollar bekannt gegeben. Die Struktur der Transaktion ermöglicht es GFL, eine 44%ige Beteiligung zu halten, während die Apollo-Fonds und die BC-Fonds jeweils 28% halten werden.
Die Erlöse werden strategisch wie folgt zugewiesen:
- Schuldenrückzahlung
- Bis zu 2,25 Milliarden Dollar für Aktienrückkäufe
- Transaktionsgebühren und allgemeine Unternehmenszwecke
Dieser strategische Schritt ermöglicht es GFL, dem viertgrößten diversifizierten Umweltserviceunternehmen Nordamerikas, die Verschuldung in Richtung Investment-Grade-Niveaus zu beschleunigen, organische Wachstumsinitiativen zu verfolgen und solide M&A-Möglichkeiten im Bereich Abfall zu implementieren. Das Unternehmen plant außerdem, die Renditen für die Aktionäre durch Aktienrückkäufe und zukünftige Dividendenerhöhungen zu verbessern.
- 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
- Reduction in full ownership control of Environmental Services division
Insights
Apollo's $8 billion co-investment in GFL Environmental's services business represents a calculated move into essential infrastructure assets with defensive characteristics. By securing a
This transaction fits Apollo's evolving strategy of diversifying beyond traditional leveraged buyouts into longer-duration assets with more predictable cash flows. Environmental services businesses typically generate stable revenues through economic cycles due to the non-discretionary nature of waste management services. The sector also benefits from high barriers to entry, established customer relationships, and regulatory tailwinds supporting improved waste handling.
The deal structure - retaining GFL as the largest shareholder while bringing in two sophisticated financial partners - suggests a collaborative governance approach that leverages Apollo's operational expertise while maintaining continuity. For Apollo shareholders, this represents a meaningful deployment of capital into a sector with potential for both yield and growth, particularly as environmental regulations continue to tighten globally.
This transaction demonstrates Apollo's continued evolution from traditional private equity toward a diversified alternative asset manager with increasing exposure to essential service businesses that generate more predictable returns for its investors.
This
The environmental services sector has seen accelerating consolidation due to its fragmented nature and increasing regulatory complexity. This partial divestiture allows GFL to monetize a business segment at an attractive valuation while maintaining significant upside exposure through its retained stake. Meanwhile, Apollo gains exposure to critical infrastructure with typically high free cash flow conversion and contracted revenue streams.
From Apollo's perspective, this transaction demonstrates strategic capital deployment toward essential service businesses with resilient earnings profiles. The environmental services sector offers unique advantages including high recurring revenue, regulatory-driven growth opportunities, and potential for operational improvements - all characteristics that align with private equity's value creation playbook.
The deal structure indicates a joint control scenario that will likely require unanimous approval for major decisions while enabling each party to contribute specific expertise. For Apollo, this represents a significant but measured commitment to the environmental sector without overextending its exposure in any single transaction.
The transaction will allow GFL to pursue organic growth initiatives and solid waste M&A opportunities
Headquartered in
GFL expects to use the proceeds from the sale to repay debt, making available up to
Pursuant to the transaction agreement, GFL will retain a
BGL's Environmental Services & Infrastructure investment banking team has been ranked #1 in Environmental Services transaction volume in
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
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SOURCE Brown Gibbons Lang & Company
FAQ
What is the value of Apollo's acquisition of GFL's Environmental Services business?
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What ownership structure results from Apollo's acquisition of GFL's Environmental Services?
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