Ontario Teachers’ part of recapitalization of GFL

The Ontario Teachers’ Pension Plan is part of an investor group that has reached an agreement to recapitalize Toronto-based environmental services company GFL Environmental Holdings Inc.

In an effort led by private equity firm BC Partners LLP, the transaction implies a total GFL value of about $5.1 billion. The company is a North American provider of diversified environmental services, including solid and liquid waste management, as well as infrastructure management. 

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“GFL is an exceptional Canadian success story led by a proven management team,” said Jane Rowe, senior managing director and head of private capital at Ontario Teachers’, in a press release. “We expect this partnership with GFL and our partners at BC Partners to create significant value for our stakeholders.”

Patrick Dovigi, founder and chief executive officer of GFL, will maintain his leadership role, as well as a significant ownership in the company. The investors involved in the recapitalization will be acquiring their shares from current partners, including funds managed by HPS Investment Partners and Hawthorn Equity Partners Inc.

“Today is a very important milestone for the next phase of growth of GFL,” said Dovigi. “From our humble beginnings in 2007 with eight employees to having now grown to a workforce of over 5,000 in both Canada and the United States, the last 10 years have been nothing short of remarkable. The signing of this transaction reflects the hard work and dedication of each and every one of our employees whose tireless efforts make GFL what it is today. Without them, our continued success would not be possible.”

The parties expect the transaction to close by June 30, 2018, pending customary closing conditions.

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