Description

GFL Environmental Could Spark A $55-Per-Share Bidding War Between Private Equity Giants!

GFL Environmental has suddenly become one of the more unusual prizes in the private equity world. The waste-management company rose after reports indicated that two powerful investment groups had submitted takeover offers, with one consortium involving KKR, Blackstone and Energy Capital Partners and another including Brookfield Asset Management and IFM Investors. Reported discussions have centered on a potential price toward the upper end of a $50-$55-per-share range, while strategic buyers have also shown interest in individual markets or regional assets. What makes the situation particularly intriguing is that GFL is not being approached while its business is deteriorating. Revenue, margins, pricing and free cash flow are moving higher, management has raised guidance twice this year, and the pending SECURE acquisition could further increase its scale. CEO Patrick Dovigi, meanwhile, has made clear that he does not view himself as a seller.