GFL Environmental Ends Buyout Talks, Stays Public

The review began after GFL formed an independent special committee to consider offers from multiple unidentified parties. Founder and Chief Executive Patrick Dovigi said at the time that the proposals represented a substantial premium to the company’s trading price. The board concluded, however, that they did not reflect the value of GFL’s standalone cash flow or its Environmental Services and Infrastructure units.

“The board is unanimous in its conviction that GFL’s standalone growth plans offer far superior risk-adjusted returns for shareholders,” special committee chair Dino Chiesa said Tuesday. Dovigi said the company’s improved free cash flow profile should allow it to double free cash flow per share over the next five years while continuing to fund acquisitions and share buybacks.

GFL’s decision follows a busy acquisition period in North America. It has completed several tuck-in deals since the start of the year, including the recent acquisition of Frontier Waste Solutions, a vertically integrated network of solid waste assets. In September, it closed its C$6.4 billion acquisition of Secure Waste Infrastructure, equivalent to $4.53 billion, expanding into Canada’s oilpatch.

Shares fell 8.5% to $41.96. The stock is up 2.3% this year. Dovigi said some suitors remain interested in buying stakes held by GFL’s financial sponsors despite the end of the take-private review; the company said it will facilitate that process.