GFL Environmental Explores Sale as Stock Slumps

GFL Environmental (NYSE: GFL ), a top rival to Waste Management (NYSE: WM ) is reportedly exploring a sale to either a competitor or a buyout firm as its stock remains under pressure.

It has received bids from some of the potential buyout companies.

GFL, which is listed in New York and Toronto, has a market capitalization of over $14.5 billion and carries $7.1 billion in debt.

That debt may make bring challenges to a potential deal.

Also, the potential buyer may need to convince Patrick Dovigi, its CEO and founder, to roll over his stake.

The potential buyout comes a year after Apollo Global Management (NYSE: APO ) and BC Partners bought a majority stake in its services unit.

It also sold a minority stake in Green Infrastructure Partners to Energy Capital Partners in a $3 billion deal.

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GFL has slumped by over 28% from its highest point last year.

Waste Management has jumped by 20% from its lowest level last year, while Republic Services (NYSE: RSG ) has jumped by 10% from the year-to-date low.

The most recent results showed that its revenue rose by 5.4% in the first quarter to $1.64 billion, with its EBITDA rising by 12.3% to $478 million.

Still, it made a ner loss of over $219 million because of its foreign exchange losses, depreciation, and high interest expenses.

The waste management industry has seen some major consolidation in the past few months.

Waste Management bought Stericycle in a $7.5 billion deal and smaller Tuck-in buyouts worth over $400 million last year.

Republic Services bought Robinson Waste Management and plans to spend over $1 billion in buyouts.

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