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 Private Equity Wire citing a Bloomberg report.
The Bloomberg report cited unnamed people familiar with the matter as saying the competing bids could result in one of the largest leveraged buyouts of the year, according to Private Equity Wire.
Competing sponsor groups and a fluid process
GFL’s special committee is expected to assess the proposals in the coming weeks and could ask bidders to improve their offers, according to Private Equity Wire citing Bloomberg.
The Bloomberg report described the process as fluid, with no final decision reached and the possibility of additional bidders or changes to the existing consortia, according to Private Equity Wire.
GFL formed a special committee in July to oversee potential merger discussions after receiving preliminary takeover interest and appointing financial advisers, according to Private Equity Wire.
Market move and implied financing scale
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, according to Private Equity Wire.
The business also carries roughly $10bn of debt, which Private Equity Wire reported as highlighting the scale of financing required for a potential take-private.
Company profile and operating footprint
GFL is one of North America’s largest environmental-services companies, employing about 15,000 people across Canada and the US, according to Private Equity Wire.
Its operations include waste collection, recycling facilities, transfer stations and landfills, according to Private Equity Wire.
CEO position and recent M&A activity
Chief Executive Patrick Dovigi built GFL with private equity backing before taking the company public in Toronto in 2020, according to Private Equity Wire.
Dovigi has said he would contribute his entire existing stake to any transaction, according to Private Equity Wire.
Private Equity Wire reported that Dovigi said this week that he was open to taking GFL private at a valuation above its current market price.
GFL has continued to expand through acquisitions, and Private Equity Wire reported that the company recently completed its combination with Secure Waste Infrastructure.
Private Equity Wire reported that the combination with Secure Waste Infrastructure strengthened GFL’s presence in western Canada while expanding its exposure to industrial waste management and energy infrastructure.
