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GFL Nears C$6B Deal for Secure Waste
13 Apr
Summary
- GFL Environmental nears C$6 billion deal for Secure Waste.
- Transaction includes over C$4.3 billion in debt.
- Deal structured with 20% cash and 80% stock.
GFL Environmental Inc. is reportedly on the verge of acquiring Canada's Secure Waste Infrastructure Corp. in a transaction valued at more than C$6 billion, which includes existing debt. The deal's structure is anticipated to comprise approximately 20% cash and 80% stock.
This potential combination is expected to substantially bolster GFL's presence in western Canada and enhance its offerings in industrial and energy-related waste services. The proposed acquisition price is around C$24.50 per share, indicating a premium of about 15% over recent trading levels, though the final terms are not yet certain.
GFL, under CEO Patrick Dovigi, has consistently pursued expansion through acquisitions. The Secure Waste deal, if finalized, would be one of its most significant recent transactions. Secure Waste, headquartered in Calgary, derives a significant portion of its earnings from waste management and recycling, with the remainder from energy infrastructure.
The acquisition is seen by GFL executives as complementary, offering substantial opportunities for cost synergies and cross-selling services. GFL also recently announced an agreement to acquire Frontier Waste Solutions in Texas for an undisclosed amount, reportedly valued at about $900 million.
