GFL Sells Majority Stake in Environmental Services Unit to Address Debt Challenges

The $6.2 billion deal with Apollo and BC Partners aims to reduce GFL's debt load while raising questions about the company’s financial strategy.

GFL Environmental Inc. has sold a 56% stake in its environmental services division to Apollo Global Management and BC Partners, valuing the unit at $8 billion.
The transaction will provide GFL with $6.2 billion in cash, of which $3.75 billion will be used to pay down its $9.5 billion debt, and $2.25 billion allocated for share buybacks and corporate purposes.
The deal introduces $4 billion in additional debt to the environmental services business, with GFL retaining a 44% minority stake and an option to repurchase the unit within five years.
GFL's debt concerns stem from years of acquisition-driven growth and rising interest rates, which have significantly increased borrowing costs and spooked investors.
The company has faced recent security concerns, including suspected arson attacks and shootings targeting its properties and executives, but stated these incidents will not disrupt operations.