GFL Acquires WCA Waste Corp. for $1.21 Billion

SEATTLE (Waste 360): GFL Environmental (GFL) agrees to acquire WCA Waste for $1.212 billion and expand its U.S. footprint.

GFL said that the purchase will be financed in part with the net proceeds of a private placement of $600 million of equity and the balance through a combination of cash on hand and capacity under the company's revolving credit facility.

WCA has an established regional platform with a growing footprint across the midwest and southeast U.S., and generates $400M in annualized revenues.

WCA operates a vertically-integrated network of solid waste assets, including 37 collection and hauling operations, 27 transfer stations, 3 material recovery facilities and 22 landfills supported by over 1,000 collection vehicles, across 11 U.S. states.  

Following the deal close, GFL will operate in nine provinces in Canada and in 27 states in the U.S.
 

Strategic Benefits of the Acquisition 

The acquisition is expected to support GFL's continued organic growth by further extending its reach into new and adjacent markets and forming a base to pursue synergistic tuck-in acquisitions. GFL expects that the acquisition will expand its U.S. footprint while creating an opportunity to realize meaningful synergies and free cash flow accretion.

GFL reported that the deal is expected to: 

• Further expand GFL's geographical reach.
• Provide a complementary asset network.
• Create long-term shareholder value.

"We continue to deliver on our goal of pursuing strategic and accretive acquisitions to grow our business.  The WCA transaction, which we have been working on for over a year, is another example of this commitment. The high quality, vertically integrated network of assets, together with our recently announced acquisition of certain divestiture assets resulting from the Waste Management and ADS transaction, will complement our existing footprint and provide us with the runway to further expand in the U.S. through tuck-in acquisitions and providing our suite of environmental services solutions to new customers. We are excited to welcome almost 1,600 employees of WCA to the GFL family," said Patrick Dovigi, the Founder and Chief Executive Officer of GFL. "To fund part of the transaction, we will be issuing new equity to HPS Investment Partners, LLC, a long standing partner of GFL, at a premium to market. Their continued support is a testament to their belief in the value proposition of GFL. The new equity will help us maintain our leverage within expected levels." 

Courtesy: www.waste360.com