Blackstone and Brookfield lead rival PE consortia in GFL takeover race
TOP STORY: 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.
Two prominent private equity firms, Blackstone and Brookfield Asset Management, are leading a bidding war for Canadian waste-management company GFL Environmental, according to a Bloomberg report citing unnamed sources. KKR and IFM Investors are also in the running for the $19 billion company, with the competing bids potentially resulting in one of the largest leveraged buyouts of the year.
GFL's special committee is set to review the proposals in the coming weeks, with the possibility of additional bidders or changes to the existing consortia. The business carries approximately $10 billion in debt, highlighting the scale of financing required for a potential take-private. GFL's shares soared as much as 8.4% in Toronto on September 17th, reaching CAD62.29, their highest level since April, and valuing the company's equity at around $19 billion.
The firm employs roughly 15,000 people across Canada and the US, managing waste collection, recycling facilities, transfer stations, and landfills. GFL's CEO, Patrick Dovigi, who built the company through private equity backing before taking it public in 2020, has expressed openness to taking GFL private at a valuation above its current market price and even stated he would contribute his entire existing stake to any transaction.
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