VAUGHAN, ON – GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) (“GFL” or the “Company”), a leading North American diversified environmental services company, provided an update today on its mergers and acquisitions since the start of the business year.
Since July 1, 2021, GFL has made 16 acquisitions on its North American platform, for a total of 31 acquisitions since the start of the year. More recently, GFL acquired the solid waste management and recycling businesses of Peoria Disposal Company and its affiliates (collectively, “PDC”) on October 1, 2021. PDC has a network of vertically integrated assets in the center of Illinois and eastern Missouri, providing residential, commercial, industrial solid waste transportation and recycling services. Operations include three active landfills, two strategically located transfer stations, a material recovery facility and a wastewater treatment plant. The acquisition also includes Peoria City / County Landfill Number 3, which is expected to begin operations in early 2024. PDC’s assets are supported by a fleet of more than 350 vehicles and more than 400 employees.
PDC has operated a regional platform for over 90 years under the ownership of the Coulter family. Royal Coulter and his son Matt Coulter will remain with the company for the long term, while other family members will continue with GFL as consultants and advisers to help with the transition.
“We continue to demonstrate our ability to successfully execute our growth strategy of pursuing strategic and profitable acquisitions,” said Patrick Dovigi, Founder and CEO of GFL. “The acquisition of PDC provides us with a unique opportunity to acquire one of the best sets of vertically integrated, family-owned and operated assets in the United States, while expanding our solid waste footprint in the US Midwest. PDC is a market leader in an aftermarket with some of the strongest operating margins in our industry. Mr. Dovigi continued, “The acquisition of PDC also provides us with the opportunity to advance our sustainability initiatives by releasing significant value from landfill gas to PDC landfill energy projects, as part of GFL Renewables. .
“After months of family reunions and feedback from trusted advisors, we made the difficult decision to put PDC up for sale,” said Royal Coulter, President and CEO of PDC. “We conducted a process in which we interviewed four other parties and although GFL was not the highest bidder, after spending two days with Patrick, our family felt that GFL was the right company to take over PDC and continue the business. legacy we have built in Peoria over the past 93 years. ” Mr. Coulter concluded, “It is clear to us that GFL shares the same core values as PDC: entrepreneurship, operational excellence, focus on safety and a commitment to give back to the communities it serves. I am delighted to be a part of the next chapter of GFL. “
On October 1, 2021, GFL also completed the acquisition of the Alabama Dumpster group of companies (“Alabama Dumpster”). Alabama Dumpster provides commercial and solid waste recycling and recycling services as well as landfill operations in the state of Alabama.
“As part of our growth strategy, we have focused on densifying our existing footprint,” said Mr. Dovigi. “The Alabama Dumpster assets complement the businesses we acquired last fall through the acquisition of WCA Waste Corporation and the Waste Management / Advanced Disposal merger. In addition, during the third quarter of 2021, we acquired the transportation activities of Waste Management in Chicoutimi, Quebec, Sault Ste. Marie, Ontario and Western Canada, as well as the Dafter, Michigan landfill, further increasing our size and scale within these markets. “
GFL also announced today that it has sold certain solid waste assets in and around the Chicago, Illinois and Rochester, Minnesota market, other than the Zion landfill, for total proceeds of approximately $ 72.5 million. US dollars (C $ 92.0 million). As part of the transaction, the buyer and GFL entered into several disposal agreements, including a 10-year disposal agreement for 450,000 tonnes per year at the Zion landfill. This sale, along with the previously announced sale of certain assets in Pennsylvania and Maryland, brings the total proceeds from the sale of GFL assets to US $ 122.5 million (C $ 155.1 million) for l ‘year.
Mr. Dovigi said: “The sale of these non-core assets is in line with our strategy of reallocating capital into organic and inorganic initiatives in our core growth markets. Given the footprint we have now, we will continue to focus on investing in markets where we expect to achieve the highest returns on our invested capital. “
GFL has financed the acquisitions made since July 1, 2021 through its recent bond issues, drawdowns on its revalued credit facility, asset disposals described above and available cash.
Mr. Dovigi continued, “At the start of the year, we provided advice that included opportunities to acquire up to C $ 280 million in revenue through additional mergers and acquisitions. – October, we deployed C $ 2.2 billion to acquire approximately C $ 715 million in revenue, or C $ 340 million in revenue excluding the acquisition of Terrapure Environmental Ltd., well beyond the opportunities we saw at the start of the year. Mr. Dovigi concluded: “We still see upside opportunities ahead of us for the fourth quarter resulting from the strong M&A pipeline that we manage. As we look towards the end of 2021, we will continue to execute our strategy. acquisition, building on our recently completed funding initiatives, including an equity commitment of up to US $ 300 million from affiliates of HPS Investment Partners, LLC, to maintain our profile current credit rating and leverage within previously stated ranges.operating efficiencies and extracting synergies from our scalable platform, all with the goal of increasing our free cash flow and creating long-term value for all our stakeholders. ”
GFL, headquartered in Vaughan, Ontario, is the fourth largest diversified environmental services company in North America, providing a full range of non-hazardous solid waste management, infrastructure remediation and waste management services. soil and liquid waste management through its platform of facilities across Canada and in 27 states in the United States. Across its organization, GFL has a workforce of over 17,000 employees.