Tuesday, September 16, 2025

GFL Exits Solid Waste Operations In Multiple States To De-Leverage Balance Sheet

GFL Environmental (TSX: GFL) has begun the process of selling off certain assets in an effort to deleverage its balance sheet. The company this morning indicated that it has advanced the closing of several divestures to the current quarter as it works to cut its net leverage ratio.

The company has elected to sell off solid waste operations in the states of Colorado, New Mexico, Tennessee, Pennsylvania, Maryland and Delaware, markets which the company refers to as non-core, and were obtained as a result of recent acquisitions.

The sale of a Nashville, Tennessee operations is said to have closed on May 1, while the sale of Colorado and New Mexico operations closed on June 1. The sale of the remaining operations is slated to close at the end of June. The transactions are said to result in gross proceeds of C$1.6 billion, which is expected to be on the balance sheet as of June 30.

The assets are said to represent $450 million in annual revenue, as well as $120 million of adjusted EBITDA. The sale of the assets is said to be free cash flow accretive, while it is expected to result in the company exiting Q2 with net leverage between 4.3x and 4.4x. That figure is slated to fall to below 3.99x before the end of the year.

“These divestitures complete our portfolio rationalization plan. We believe our network of assets and market selection position us for high quality, organic profitability growth and we remain focused on our M&A strategy of densifying our existing footprint across Canada and the United States through our robust acquisition pipeline,” commented Patrick Dovigi, CEO of GFL.

In the near term, the sale of the assets ahead of schedule is slated to result in a $25 million reduction in quarterly revenue for Q2, while free cash flow is expected to decline by $3.0 million.

GFL last traded at $50.40 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

GFL Environmental Sees Selling Shareholders’ Plan For Secondary Offering Of 12.7 Million Shares

GFL Environmental Inc. (TSX: GFL) announced on Thursday that its selling shareholders intend to conduct...

Friday, November 19, 2021, 09:58:00 AM

GFL Environmental Prices US$250 Million Private Senior Notes Offering

GFL Environmental Inc. (TSX: GFL) priced this morning its previously announced private offering of senior...

Wednesday, September 22, 2021, 10:57:00 AM

GFL Environmental: BMO Lifts Target To US$42 After Asset Divesture

At the start of the month, GFL Environmental Inc. (TSX: GFL) announced that they completed...

Friday, October 15, 2021, 11:34:00 AM

GFL Environmental CEO Unloads US$25 Million In Shares

GFL Environmental (TSX: GFL) has seen its CEO, Patrick Dovigi, unload millions worth of subordinate...

Saturday, December 16, 2023, 09:40:29 AM

GFL Environmental To Repurchase Up To 5% Of Shares Under Buyback Program

GFL Environmental (TSX: GFL) is looking to provide some returns to shareholders. The company this...

Tuesday, May 10, 2022, 09:10:18 AM