(Reuters) -Canada’s GFL Environmental on Thursday announced a deal with funds managed by Energy Capital Partners to recapitalize its construction subsidiary, Green Infrastructure Partners (GIP), giving the business an enterprise value of $4.25 billion. GIP will receive gross proceeds of $775 million, of which it will return $585 million to its shareholders and use $175 […]
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GFL’s Green Infrastructure Partners to be recapitalized in $4.25 billion deal
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(Reuters) -Canada’s GFL Environmental on Thursday announced a deal with funds managed by Energy Capital Partners to recapitalize its construction subsidiary, Green Infrastructure Partners (GIP), giving the business an enterprise value of $4.25 billion.
GIP will receive gross proceeds of $775 million, of which it will return $585 million to its shareholders and use $175 million to fund future growth, GFL said.
GFL will receive $200 million of the distributed amount and will own a near 30.1% interest in GIP valued at about $895 million, the company said.
The deal allows GFL to partially monetize its investment in GIP, which it co-founded in 2022 alongside HPS Investment Partners and Patrick Dovigi, GFL’s CEO.
The unit provides services such as road building, paving, and site development, and operates separately from GFL’s core solid waste and environmental business.
During its first-quarter earnings call in May, the waste management company told analysts it was exploring a “potential partial sale” of GIP.
(Reporting by Abhinav Parmar and Apratim Sarkar in Bengaluru; Editing by Anil D’Silva)