GFL Environmental’s stock went up by 2% before the stock market opened because of a report. The report said that GFL, a company that handles waste services, has hired JPMorgan, a big bank, to look at two offers they received. One offer is for the whole company, and the other is just for the part of the company that deals with environmental services.
A group of investors and government funds want to buy the entire company, but it’s still early, and they might not actually make a deal. Another buyer is interested in just the environmental services part and is willing to pay a lot for it. This news came after another report said that some investment groups were thinking about buying GFL. Also, on the same day, another company, Waste Management, announced that they’re buying Stericycle for a lot of money.
Key Points:
- GFL Environmental’s Stock Increase: Before the regular stock market hours, GFL Environmental’s stock price rose by 2%. This increase was driven by a report revealing that the company has engaged JPMorgan to evaluate two acquisition offers they received.
- Offers Under Consideration: GFL Environmental is currently considering two offers. One offer is for the entire company, while the other is specifically for its environmental services division. These details were disclosed by a report in the Globe & Mail, which cited a source familiar with the matter.
- Potential Buyers: A consortium comprising infrastructure funds and sovereign wealth funds is interested in acquiring the entire company. However, it’s emphasized that discussions are still in the early stages, and a final deal may not materialize. Another potential buyer is interested in purchasing only the environmental services division of GFL.
- Offer Details: The offer for the environmental services division values it at approximately 15 times its earnings before interest, taxes, depreciation, and amortization (EBITDA). This is a significant premium considering that the division generated $383 million in EBITDA last year.
- Market Response: This news follows a recent surge in GFL Environmental’s stock price, which rose by 18% over the past two days. This surge was triggered by reports suggesting that private equity consortiums were eyeing a potential takeover of GFL. Additionally, another financial sponsor was reportedly considering a deal for GFL’s environmental services business.
- Industry Activity: In parallel, Waste Management, a major player in the waste management industry, announced its agreement to acquire Stericycle for $7.2 billion, including debt. This underscores a period of heightened merger and acquisition activity within the waste services sector.
About GFL Environmental
GFL Environmental Inc. stands out as more than just a waste management entity; it’s a comprehensive provider of environmental solutions. The company prides itself on being a ‘one-stop shop’ for a broad spectrum of customizable and integrated environmental services. This approach offers customers the convenience of dealing with a single provider, potentially saving them time, resources, and money by avoiding the need to engage multiple vendors.
At the core of GFL’s strengths is the variety of services it offers. These services are supported by top-tier resources, including advanced specialty equipment and a team of well-informed, extensively trained professionals.
Safety and environmental responsibility are at the forefront of GFL’s service delivery. The company leverages its vast industry knowledge to offer solutions that are not only effective but also environmentally considerate.
GFL operates across North America, providing a suite of sophisticated services tailored to meet any waste management requirement. Whether it’s specialized collection, disposal, recycling, or responding to hazardous material emergencies, GFL is equipped with the necessary tools, expertise, and personnel to manage both hazardous and non-hazardous liquid waste challenges safely.
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