GFL Environmental lands new investment

Toronto-based solid waste company GFL Environmental Inc. and investors led by London-based BC Partners have announced an agreement to recapitalize GFL Environmental Holdings Inc.

The transaction implies a total GFL enterprise value of about CA$5.125 billion ($3.985 billion), making GFL one of the largest environmental services companies in North America.

The move comes after the solid waste company had contemplated an initial public offering in late 2017. Patrick Dovigi, GFL’s founder and CEO, will maintain his role and leadership of the firm and will maintain what GFL calls in a news release “significant ownership in the company.” New investors, meanwhile, will acquire the interests of current partners, including funds managed or associated with HPS Investment Partners, Macquarie Infrastructure Partners III and Hawthorn Equity Partners.

GFL provides services in solid waste management (including recycling), liquid waste management and infrastructure management. The company has more than 140 facilities in Canada and in Michigan in the United States. The company provides environmental services to more than 2.5 million households under municipal contracts and more than 60,000 industrial, commercial and institutional customers.

The recapitalization transaction is expected to close by June 30, 2018.

BC Partners describes itself as an investment firm with more than €17 billion ($20.5 billion) of assets under management. Established in 1986, the firm has completed 101 private equity investments in companies with a total enterprise value of €124 billion ($150 billion).

Among the investors in the GLF recapitalization is the Ontario Teachers’ Pension Plan,  a defined benefit plan headquartered in Toronto with an Asia-Pacific region office in Hong Kong and a Europe, Middle East and Africa region office in London. The group invests and administers the pensions of the province of Ontario’s 323,000 active and retired teachers.