TORONTO, April 22, 2018 /PRNewswire/ -- GFL
Environmental Inc. ("GFL" or the "Company") and investors led by BC
Partners ("BC Partners"), including Ontario Teachers' Pension Plan
("Ontario Teachers'") and others, jointly announced today their
agreement to recapitalize GFL Environmental Holdings Inc. The
transaction implies a total GFL enterprise value of approximately
$5.125 billion, making GFL one of the
largest environmental services companies in North America.
In connection with the transaction, Patrick Dovigi, Founder and CEO, will maintain
his role and leadership of GFL, as well as significant ownership in
the Company, while the investors will acquire the interests of
current partners including funds managed or associated with HPS
Investment Partners, Macquarie Infrastructure Partners III and
Hawthorn Equity Partners.
GFL is one of the fastest growing North American providers of
diversified environmental solutions. It provides services in solid
waste management, liquid waste management and infrastructure
management. Through its network of more than 140 facilities across
Canada and in Michigan, GFL provides cost-effective waste
management solutions that encourage greater environmental
responsibility. GFL's team of more than 5,000 employees provides
local services to more than 2.5 million households under municipal
contracts and to more than 60,000 industrial, commercial and
institutional customers.
Mr. Dovigi, on behalf of GFL, said "today is a very important
milestone for the next phase of growth of GFL. 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."
Mr. Dovigi added, "BC Partners and Ontario Teachers' tick all
the boxes for us at GFL. Having founded the company, it was
very important to me to find partners that shared the same
principles, values and vision, along with having significant
capital to fund our ambitious growth plans. I would like to thank
HPS Investment Partners, Macquarie Infrastructure Partners and
Hawthorn Equity Partners for their support of GFL during the past
years."
Paolo Notarnicola, Senior
Partner, who led the investment said: "BC Partners is excited to be
partnering with Patrick and his high quality management team. Our
goal is to provide the capital and strategic support necessary for
the continuation of their remarkable growth story." Raymond Svider, Managing Partner and co-Chairman
of BC Partners, added: "We look forward to a close collaboration
with GFL and our partners at Ontario Teachers as an important part
of our long-term strategy to grow in the Canadian marketplace."
"GFL is an exceptional Canadian success story led by a proven
management team. We expect this partnership with GFL and our
partners at BC Partners to create significant value for our
stakeholders," said Jane Rowe,
Senior Managing Director, Private Capital
at Ontario Teachers' Pension Plan."
The transaction is expected to close by June 30, 2018. Scotiabank acted as financial
advisor to BC Partners in Canada
with Citi in the United States.
Citigroup Global Markets Inc. also provided committed financing for
the transaction. RBC Capital Markets, CIBC World Markets
Inc., Goldman Sachs & Co. LLC, BMO Capital Markets and Barclays
Capital Canada acted as financial advisor to GFL. Stikeman
Elliott LLP and Cleary Gottleib
Steen &Hamilton LLP are legal advisors to GFL, while
Osler, Hoskin & Harcourt LLP
and Simpson Thacher & Bartlett LLP provided legal advice to the
investors.
About BC Partners
BC Partners is a leading international investment firm with over
€17 billion of assets under management in private equity and
private credit. Established in 1986, BC Partners has played an
active role in developing the European buy-out market for three
decades. Today, BC Partners executives operate across markets as an
integrated team through the firm's offices in North America and Europe.
Since inception, BC Partners has completed 101 private equity
investments in companies with a total enterprise value of €124
billion and is currently investing its tenth private equity fund.
For more information, please visit www.bcpartners.com.
About Ontario Teachers'
The Ontario Teachers' Pension Plan (Ontario Teachers') is
Canada's largest single-profession
pension plan, with C$180.5 billion in
net assets at 30 June 2017. It holds
a diverse global portfolio of assets, approximately 80% of which is
managed in-house, and has earned an annualized gross rate of return
of 10.1% since the Plan's founding in 1990. Ontario Teachers' is an
independent organization headquartered in Toronto. Its Asia-Pacific region office is located in
Hong Kong and its Europe, Middle
East & Africa region
office is in London. The
defined-benefit plan, which is fully funded, invests and
administers the pensions of the province of Ontario's 318,000 active and retired teachers.
For more information, visit otpp.com and follow us on Twitter
@OtppInfo.
About GFL
GFL, headquartered in Toronto,
ON, is a diversified environmental services company
providing a comprehensive line of solid waste, infrastructure &
soil remediation, and liquid waste management services through its
platform of facilities across Canada and in Southeastern Michigan. GFL has a workforce of
more than 5,000 employees and provides its broad range of
environmental services to more than 60,000 commercial and
industrial customers and its solid waste collection services to
more than 2.5 million households.
Forward-Looking Information
This release may contain forward-looking information including
but not limited to the proposed recapitalization of GFL by
investors including BC Partners, Ontario Teachers' and others. Such
forward-looking information is based on certain assumptions and
analysis made by GFL in light of its experience and perception of
current conditions and expected future developments as well as
other factors it believes are appropriate in the circumstances.
However, whether actual results, performance or achievements will
conform to GFL's expectations and predictions is subject to market
conditions and a number of known and unknown risks and
uncertainties which could cause actual results to differ materially
from GFL's expectations.
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