Business · Companies · 7 hrs ago
GFL Environmental rejects US$22-billion buyout offer
GFL Environmental rejected a US$22-billion buyout offer from a group led by Blackstone, KKR and Energy Capital Partners.
The waste-disposal company said the proposed price of US$52 a share was not high enough, and its board had sought at least US$58.
The offer would have taken GFL private, meaning its shares would no longer trade publicly if the deal had gone ahead.
GFL was founded in Vaughan, Ontario, and is now headquartered in Miami, with shares listed in Toronto and New York.
The company began its strategic review in July after receiving interest from multiple potential buyers.
The board plans to end the review without a sale, while allowing major shareholder BC Partners to sell a significant part of its 22 per cent stake to outside investors.
The decision matters to investors because the rejected offer was 13 per cent above GFL’s share price on Monday, but analysts’ forecasts and comparisons with other public companies suggested the board could view the company as worth more.
GFL Environmental rejected a US$22-billion buyout offer from a consortium led by Blackstone, KKR and Energy Capital Partners.
The offer was US$52 a share, but GFL’s board considered it inadequate.
The board had sought an offer of US$58 a share or more, which the consortium declined to make.
GFL is expected to conclude its strategic review without a sale.
The company launched the review in July after receiving expressions of interest from multiple parties.
- Who
- GFL Environmental and a consortium led by Blackstone, KKR and Energy Capital Partners.
- What
- GFL rejected the consortium’s US$22-billion buyout offer.
- When
- The board rejected the offer late Monday, after a four-month strategic review.
- Where
- GFL is headquartered in Miami and operates across North America.
- Why
- GFL’s board judged the offer inadequate and sought at least US$58 a share.
GFL Environmental’s board
Blackstone, KKR and Energy Capital Partners
Offer value
GFL Environmental’s board
The board considered the US$52-a-share offer inadequate.
Blackstone, KKR and Energy Capital Partners
The consortium offered US$52 a share.
Requested price
GFL Environmental’s board
The board sought US$58 a share or more.
Blackstone, KKR and Energy Capital Partners
The consortium refused to meet that request.
GFL launched a strategic review after receiving expressions of interest from multiple parties.
GFL’s board told the consortium it would not accept the US$52-a-share offer.
GFL was expected to announce that its strategic review had concluded without a sale.
- Offer value
- US$22 billion
- Offer price
- US$52 a share
- Board’s requested price
- US$58 a share or more
- Consortium members
- Blackstone, KKR and Energy Capital Partners
- GFL headquarters
- Miami
What people are saying
unsolicited preliminary expressions of interest from multiple parties to take the company private