One consortium moves ahead in the GFL Environmental sales process - CTFN (update)

One of two bidding groups for GFL Environmental has advanced in the company's sale process, according to traders citing a CTFN report. Both consortia remain in the process, and some shareholders are reportedly considering their options.

GFL Environmental may reach a sale agreement with private equity firms as early as next week, though terms are still under negotiation. The deal involves GFL Environmental and a consortium of private equity firms.

GFL Environmental's stock rose 5% after reports that private equity firms, including Blackstone, Brookfield, KKR, and Energy Capital, are considering a joint bid for the company.

GFL Environmental (NYSE: GFL) shares rose 8% after reports of a potential bidding war between two private equity consortiums. The company, valued at $28 billion, is open to a deal above its current market price. CEO Patrick Dovigi may roll his stake into any transaction. Bloomberg News reports a decision could come within weeks, though regulatory scrutiny may extend the timeline.

GFL Environmental (NYSE:GFL) completed its C$6.4B acquisition of SECURE Waste Infrastructure, issuing 75.1M shares and securing a US$1B term loan. The deal adds 80+ locations and 2,000 employees, but introduces dilution and debt. GFL estimates a 5% interest rate post-swaps and targets mid-3x net leverage by year-end. SECURE's assets add cyclicality and environmental risks. GFL plans to update 2026 guidance with Q3 results.

GFL Environmental completed its acquisition of Secure Waste Infrastructure, expanding its western Canada presence. The deal, valued at $6.4B, was financed with 80% stock and 20% cash, including a $1B U.S. term loan. Secure's management will remain, and the company will be delisted from the TSX. GFL expects the acquisition to accelerate its 2028 EBITDA target of over $3B. Secure reported H1 2024 revenue of $805M, up 10% YoY.