Executives and guests of GFL Environmental Inc., ring the New York Stock Exchange opening bell, in celebration of the company's Initial Public Offering, Wednesday, March 4, 2020. GFL Environmental is acquiring Terrapure Environmental for $927.5 million. THE CANADIAN PRESS/AP-Richard Drew
March 15, 2021 - 3:28 PM
VAUGHAN, Ont. - GFL Environmental Inc. says it has reached an agreement to acquire fellow Ontario waste management firm Terrapure Environmental Ltd. for $927.5 million.
The deal, which excludes Terrapure's battery recycling business, generated about $365 million in revenues last year, including COVID-related volume impacts.
Burlington-based Terrapure serves more than 7,000 customers across Canada with a fleet of more than 5000 collection trucks and 1,600 employees.
It has a landfill in the Stoney Creek municipality in Hamilton that recently received expansion approval for at least 14 years.
GFL, based in Vaughan, Ont., says the acquisition aligns with its strategy to increase free cash flow by adding complementary networks in several regional markets, including Atlantic Canada.
It expects the acquisition will generate at least $45 million in adjusted free cash flow and at least $12.5 million in annual cost savings due to overlap between the two companies.
"The acquisition of Terrapure is another example of GFL delivering on our commitment to pursue strategic and accretive acquisitions to continue growing our business," stated GFL founder and CEO Patrick Dovigi.
"Terrapure's assets are highly complementary to our existing solid and liquid waste footprint in Canada."
The deal is expected to close in the third or fourth quarter. It will be financed from its revolving credit facility, cash on hand and additional financing.
GFL is the fourth largest diversified environmental services company in North America with facilities across Canada and in 27 states. It has more than 15,000 employees.
This report by The Canadian Press was first published March 15, 2021.
Companies in this story: (TSX:GFL)
News from © The Canadian Press, 2021