Deal Opens the Quebec and Eastern Ontario Waste & Recycling Markets for GFL

GFL Environmental Completes CAD$800m Acquisition of Matrec

Toronto based environmental service firm, GFL Environmental, has completed the acquisition of the Matrec solid waste division from TransForce for CAD$800 million.

Image ©

Toronto based environmental service firm, GFL Environmental, has completed the acquisition of the Matrec solid waste division from TransForce (TSX: TFI) for CAD$800 million ($585 million).

 

According to GFL the acquisition will facilitate entry into the Quebec and Eastern Ontario markets.

 

The acquisition was funded in part by the private offering of US$300 million in aggregate principal amount of senior unsecured notes due 2021 and bearing interest at 9.875% per annum.

 

GFL explained that the Notes were issued through its wholly owned subsidiary, GFL Escrow Corporation.

 

The acquisition was also funded in part through a CAD$458.0 million equity investment by Macquarie Infrastructure Partners III, an infrastructure fund managed by Macquarie Infrastructure and Real Assets, a division of Macquarie Group (ASX: MQG; ADR: MQBKY), and an investor group consisting of Highbridge Principal Strategies together with new and existing co-investors in GFL Environmental Holdings.

 

Following completion of the Matrec acquisition and the Macquarie and HPS Investor Group investments, GFL said that its total enterprise value is approximately $2.4 billion, making it one of the largest environmental services companies in Canada.  

 

According to Patrick Dovigi, GFL's Founder and CEO, the transaction solidifies GFL's position as a major player in the Canadian environmental services industry by expanding its solid waste operations into Quebec and Eastern Ontario.

 

"Matrec is led by an experienced management team including Dave Richmond who has over 25 years of industry,” said Dovigi.

 

Scot French, Partner at Highbridge Principal Strategies added: "Today's announcements are integral components of the Company's strategic business plan and will help further position GFL for long-term success.”


Read More

Metro Vancouver Discontinuous Waste to Energy Procurement

In Canada, Metro Vancouver has discontinued its current waste to energy procurement program, citing uncertainty around future waste volumes.

 

Poll: 66% of Canadians Back Waste to Energy Technology

Two thirds of Canadians have a favourable perception of waste to energy technologies, according to a poll Commissioned by the Canadian Plastics Industry Association (CPIA), and undertaken by Nielsen in April 2014.

 

Canadian Recycled Packaging Firm Invests in New Tech
Canadian green packaging manufacturer, Cascades, is making strategic investments amounting to $4.5 million in its Plastiques Cascades plant in Kingsey Falls and its Cascades Inopak plant in Drummondville, Quebec which specialises in the manufacture of packaging for fresh food made from recycled plastic.