GFL Environmental Inc. Announces Agreement to Recapitalize Green Infrastructure Partners at an Enterprise Value of $4.25 Billion with Investment from Energy Capital Partners

Core Viewpoint - GFL Environmental Inc. announced that Green Infrastructure Partners (GIP) has entered into a definitive agreement with Energy Capital Partners (ECP) to recapitalize its business at an enterprise value of $4.25 billion, highlighting the growth and value creation potential of GIP since its establishment in 2022 [1][3]. Financial Summary - GIP will receive gross proceeds of $775 million, with approximately $585 million intended for shareholder distribution and $175 million allocated to its balance sheet for future growth [2]. - GFL will receive about $200 million from the shareholder distribution, resulting in GFL owning a 30.1% interest in GIP valued at approximately $895 million post-transaction [2]. - Pro forma for the transaction, GIP's total equity value will be around $3 billion [2]. Management Insights - Patrick Dovigi, CEO of GFL, emphasized that the recapitalization reflects the quality of GIP's management and business, and the proceeds will be used for corporate purposes, including de-leveraging and pursuing growth strategies [3]. - Dovigi expressed confidence in creating $1 billion of value for GFL shareholders through the investment in GIP, noting that the original investment of $250 million has grown to approximately $1.1 billion in just over three years [3]. Strategic Partnerships - ECP was selected as a partner for this transaction due to its expertise in critical infrastructure and a strong track record of value creation [3]. - ECP's involvement is expected to provide GIP with significant capital to execute on a compelling M&A pipeline, enhancing growth and margins [3]. Company Overview - GFL is the fourth largest diversified environmental services company in North America, providing solid waste management services across Canada and 18 U.S. states, with a workforce of over 15,000 employees [4].