According to Zhitong Financial APP, a consortium of investors supported by global asset management giants Apollo Global Management and BC Partners is very close to acquiring a controlling interest in the environmental services division of GFL Environmental Inc. According to media reports citing informed sources, this transaction led by Apollo and BC Partners may value GFL Environmental's business at approximately 8 billion Canadian dollars (about 5.6 billion US dollars), including debt size.

Informed sources stated that the investment consortium is in deep negotiations regarding the share acquisition, with the agreement likely to be officially announced in the coming days. Since the information is private, the informed sources requested to remain anonymous.

Informed sources also indicated that GFL Environmental may retain the option to buy back these shares from Apollo Global Management and BC Partners at some point in the future. GFL Environmental is listed on both the Canadian and US stock markets, with the stock price in the US having increased by approximately 36% over the past year.

BC Partners has recently been very active in the Canadian market, agreeing last year to sell GardaWorld, with the transaction valuing the security services company at approximately 13.5 billion Canadian dollars.

Informed sources stated that discussions regarding the GFL Environmental transaction are still ongoing, and the agreement may still be delayed. Representatives of Apollo, BC Partners, and GFL Environmental declined to comment.

According to its official website, GFL Environmental, headquartered in Vaughan, Ontario, Canada, provides solid and liquid waste management and exclusive soil remediation services in the Canadian and US markets. The company employs more than 0.02 million staff.

In the past year, GFL Environmental's stock price on the NYSE has risen by 36%, bringing the company's Market Cap to approximately 17 billion USD. On Monday, the stock traded down by 1.4% to 44.02 USD, but following acquisition news, its stock price increased by 1.7% in Post-Market Trading.

In 2018, a large investment consortium led by BC Partners invested in GFL, valuing the Canadian environmental services company at approximately 5.1 billion USD (including debt). At that time, the Ontario Teachers' Pension Plan was also one of the major Institutions, while GFL's founder and CEO, Patrick Dovigi, continued to serve in his role and holds a significant stake in the company.

In recent years, GFL has become one of the largest Eco-friendly Waste Management companies in North America by rapidly acquiring some of its core competitors. However, the increasingly expanding debt burden to support this performance growth and expansion trend has become a major concern for GFL investors, prompting the company to seek buyers for some low-profit businesses.

In November, GFL executives indicated that its environmental services business had received interest from several investment Institutions, with potential agreements expected to be signed by early 2025. At that time, the company stated that most of the proceeds would be used to repay the CSI Enterprise bond Index, while the remaining portion could be used for Share Buyback in the secondary market or other purposes.

Insiders reported that last year, GFL's environmental services division generated approximately 1.7 billion CAD in revenue, with earnings before interest, taxes, depreciation, and amortization (EBITDA) exceeding 0.5 billion CAD.

Analysts indicated that the Eco-friendly and Waste Management sector is a highly 'counter-cyclical' Industry that is supported by policies and environmental regulations, resulting in relatively stable demand. Thus, liquidity-rich asset management giants often focus on such segments with relatively predictable and sustainable cash flows, especially in the current environment where the Federal Reserve may maintain high interest rates for an extended period, which could lead to significant macroeconomic fluctuations. These assets are quite defensive and can be considered a 'safe haven.'

Generally, asset management giants like Apollo Global Management and BC Partners typically achieve overall value enhancement and improved investment returns over a 5-10 year investment cycle by focusing on Operation and capital operations. They then exit with gains through secondary transfers, driving an IPO, or selling back to original Shareholders (for instance, GFL indicates a potential reservation of buyback options).