GFL Environmental Unveils Strategic Share Offering
Toronto, Wednesday, 26 March 2025.
GFL Environmental Inc. reveals a secondary offering of 15,739,769 shares. This move, involving several major investors, is set to alter the firm’s market perception.
Major Share Restructuring Initiative
GFL Environmental Inc. (NYSE: GFL) (TSX: GFL), North America’s fourth-largest diversified environmental services company [1], announced on March 25, 2025, a comprehensive share restructuring plan. The initiative includes a direct share buyback of 17,050,298 subordinate voting shares from BC Partners at US$46.92 per share, representing a 3.5% discount to the market price [2]. This strategic move is part of a larger plan to deploy approximately $2.25 billion from the sale of its Environmental Services business [2].
Key Shareholders and Transaction Details
The secondary offering involves several major institutional investors, including the Ontario Teachers’ Pension Plan Board, GFL Borrower II (Cayman) LP, Poole Private Capital, LLC, and HPS Investment Partners, LLC [3]. RBC Capital Markets, LLC and RBC Dominion Securities Inc. have been appointed as underwriters for the offering in the United States and Canada respectively [3]. The transaction’s documentation, including the Prospectus Supplement, will be made available through SEDAR+ on March 27, 2025 [4].
Corporate Governance and Market Impact
The transaction has received unanimous approval from GFL’s board of directors, following careful consideration by a Special Committee of independent directors [2]. Post-transaction, BC Partners’ holding will decrease to approximately 20.5% of subordinate voting shares, representing about 14.8% of total voting power [2]. The company’s strategic decisions are supported by recent regulatory approval, as GFL received exemptive relief from the Ontario Securities Commission on March 13, 2025, facilitating share repurchases from underwriters [2].