GFL Environmental Inc. held investment talks with Apollo Global Management Inc. as the Canadian waste management company weighs potential privatization interest while its share price remains under pressure.
GFL’s board has created a special committee to review any investment or takeover proposals. A full takeover, however, would likely depend on support from founder and chief executive officer Patrick Dovigi, who controls roughly one-quarter of the vote through his multiple voting shares.
Apollo and GFL both refrained from commenting.
Apollo’s discussions with GFL were about a potential investment. If a full takeover does not move forward, Apollo or another bidder could try to acquire GFL shares held by BC Partners and GIC, Singapore’s sovereign wealth fund.
BC Partners led a recapitalization of GFL in 2018, and the article noted that private equity firms typically hold positions for five to seven years.
The talks with Apollo were formalized in late May, according to a document reviewed by The Globe. GFL has again hired J.P. Morgan as its financial adviser for the current discussions.
GFL has traded publicly on the Toronto Stock Exchange and the New York Stock Exchange since March, 2020. Its share price has doubled in the U.S. since its initial public offering, but over the past year it has lagged its three main North American competitors: Waste Management Inc., Waste Connections Inc. and Republic Services Inc.
Before news of possible takeover talks emerged on Friday, GFL’s shares were down 18% over the past year. Over the same period, its three rivals were roughly flat to down 10%, while the S&P 500 was up 19%.
After the talks with private buyers became public, GFL’s shares rose 7.6% on Friday in Toronto, giving the company a market value of $21Billion (CAD). The U.S. exchanges were closed on Friday for the July 4 holiday.
One condition of any cash takeover is that Mr. Dovigi would roll his shares into an investment vehicle set up by a buyer to own GFL. That structure would leave him as a significant shareholder through a private investment vehicle run by someone else.
The article from The Globe also said an investment vehicle could be used in a minority stake deal, and that BC Partners and GIC could potentially recycle some of their sale proceeds into it.
GFL has spent more time under private ownership than as a public company since its founding in 2007, but returning to private ownership could complicate liquidity options for its founder, according to the report.
Apollo and GFL worked together in January 2025, when GFL sold a majority stake in its environmental services division to Apollo and BC Partners. That transaction brought GFL $6.2Billion (CAD) in cash proceeds, which the company used in part to reduce its heavy debt load.
GFL’s environmental services business includes liquid waste management and soil remediation services, among other operations. The company began an auction for that division in mid-2024.
At that time, GFL was also dealing with a lower share price and had hired J.P. Morgan to consider both a privatization of the whole company and a sale of the environmental services unit. GFL ultimately chose the division sale and said management still believed in the company’s growth prospects.
"We do not believe that taking GFL private at this time is in the best long-term interest of our shareholders", Mr. Dovigi said during the summer of 2024.
Any new takeover effort would also unfold while GFL is pursuing its $5.4Billion (CAD) equity-based acquisition of Calgary-based Secure Waste Infrastructure Corp., announced in April. GFL is funding that deal mostly with shares, with Secure agreeing to receive 80% stock and 20% cash.
Due to the fact Secure shareholders will want input on the future ownership of their company, any GFL takeover is expected to include a condition requiring the Secure transaction to close. Secure shareholders are also expected to be given the chance to vote on any go-private deal.
For a full takeover to proceed, a buyer would need to offer a price high enough to satisfy GFL shareholders, especially those who see long-term value in the company and do not want to sell cheaply.
