Blackstone, KKR, and Energy Capital Partners have teamed up on a potential acquisition of GFL Environmental, while Brookfield Asset Management and IFM Investors are also pursuing the Canadian waste-management company in a rival consortium, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as highlighting that the competing bids could result in one of the largest leveraged buyouts of the year. GFL’s special committee is expected to assess the proposals in the coming weeks and could ask bidders to improve their offers.
The process remains fluid though, with no final decision reached, and the possibility of additional bidders or changes to the existing consortia, the people said.
GFL’s shares rose as much as 8.4% in Toronto on 17 September to CAD62.29, their highest level since April, valuing the company’s equity at about $19bn. The business also carries roughly $10bn of debt, highlighting the scale of financing required for a potential take-private.
GFL is one of North America’s largest environmental-services companies, employing about 15,000 people across Canada and the US. Its operations include waste collection, recycling facilities, transfer stations and landfills.
The company formed a special committee in July to oversee potential merger discussions after receiving preliminary takeover interest and appointing financial advisers. Chief Executive Patrick Dovigi, who built GFL with private equity backing before taking the company public in Toronto in 2020, has said he would contribute his entire existing stake to any transaction.
Dovigi said this week that he was open to taking GFL private at a valuation above its current market price.
GFL has also continued to expand through acquisitions. The company recently completed its combination with Secure Waste Infrastructure, strengthening its presence in western Canada while expanding its exposure to industrial waste management and energy infrastructure.
