APOLLO GLOBAL MANAGEMENT & BC PARTNERS take majority stake in GFL Environmental Services Business

Signed on January 7, 2025, the definitive transaction agreement between GFL Environmental and funds managed by Apollo and BC Partners values the Environmental Services division at . The transaction structure details the sale of a controlling ownership block whereby Apollo funds and BC Partners funds each acquire a 28% equity interest, leaving GFL Environmental with a retained 44% equity position alongside a five-year call option to repurchase the business post-closing. Generating operating earnings above , the standalone environmental unit yields approximately $6.2 billion in net cash proceeds to GFL following the deduction of its $1.7 billion retained equity holding and estimated transaction taxes. The vendor directs up to $3.75 billion of cash proceeds toward debt reduction to achieve an annualized interest savings of $200 million and reach a pro forma net leverage target of 3.0x, alongside allocating up to $2.25 billion to equity repurchase programs. The transaction closed without debt financing conditions. Transaction advisory mandates saw Brown, Gibbons, Lang & Company and J.P. Morgan Securities serve as financial advisors to GFL Environmental, with legal counsel led by Latham & Watkins and Stikeman Elliott. Canaccord Genuity delivered an independent fairness opinion to GFL's Special Committee of independent directors, which was advised by Cassels Brock & Blackwell. Acquisition legal advisory included Sidley Austin representing the Apollo funds in the United States, Kirkland & Ellis acting for BC Partners in the United States, and Osler, Hoskin & Harcourt serving as joint Canadian transactional counsel to both private equity sponsors.