GFL Environmental Inc. has agreed to buy TransForce Inc.’s Matrec solid waste division for $800 million (CDN), making GFL one of the largest independent waste management companies in Canada.
GFL-EnvironmentalThe acquisition, set to close in February 2016, also facilitates GFL’s entry into eastern Ontario and the Quebec market.
Patrick Dovigi, GFL founder and CEO, commented on the acquisition, noting that, “The addition of Matrec’s significant landfill, transfer station and recycling center operations, including the Lafleche landfill in Eastern Ontario in close proximity to the Ottawa market, will provide GFL with new opportunities to internalize existing waste streams.
Dovigi added that the Matrec division is expected to generate approximately $82 million of EBITDA in 2016, pre-synergies.
Dovigi said Matrec is led by an experienced management team, including Dave Richmond, who has over 25 years of industry experience.
“I am thrilled to have Dave and the employees of Matrec join the GFL team,” added Dovigi.
GFL intends to fund the balance of the purchase price through a combination of new equity from a combination of new and existing equity holders, term bank debt, and the issuance of high yield notes. As part of the new equity, $100 million is expected to be satisfied by the issuance to TransForce of shares of GFL, subject to certain closing conditions. With its investment, Alain Bédard, President and CEO of TransForce, will be joining the GFL board of directors. GFL anticipates that funding of the acquisition will result in pro forma leverage consistent with its current level.
About GFL Environmental Inc.
GFL, headquartered in Toronto, is a diversified environmental services company providing a comprehensive line of solid waste, soil remediation, and liquid waste services through its national platform. GFL currently serves over 29,000 commercial and industrial customers and approximately 1.2 million households under municipal solid waste contracts. With the addition of Matrec, GFL will have a workforce of over 2,700 employees, and will have operations in all Canadian provinces other than Prince Edward Island and will serve approximately 43,000 commercial and industrial customers and more than 1.7 million households.