GFL Environmental Inc. (GFL) Agrees Recapitalization of GIP and Boosts Stakes to 30.1%

GFL Environmental Inc. (NYSE:GFL) is one of the best stocks to invest in, according to billionaire George Soros. On August 7, the company announced it had reached a deal with Energy Capital Partners to recapitalize its construction subsidiary, Green Infrastructure Partners (GIP), at an enterprise value of $4.25 billion.

GFL Environmental Inc. (GFL) Agrees Recapitalization of GIP and Boosts Stakes to 30.1%

Under the terms of the deal, GIP is to receive $775 million in gross proceeds, of which $585 million is to be returned to shareholders. On the other hand, $175 million is to be set aside to fund future growth. Likewise, GFL Environment is to receive $200 million of the amount and will ultimately own approximately 30.1% of GIP’s interest.

The recapitalization deal paves the way for GFL to monetize its stake in GIP, which it co-founded in 2022 with HPS Investment Partners and Patrick Dovigi. The deal also comes on the heels of GFL announcing early in the year that it was exploring plans to sell some stakes in GIP. The company ultimately sold its environmental services division to Apollo and BC Partners for $5.6 billion.

GFL Environmental Inc. (NYSE:GFL) provides a range of diversified environmental services, including solid waste management, liquid waste management, and soil remediation, to businesses, institutions, and households across North America. Its offerings include waste collection, recycling, hazardous waste handling, and emergency response, as well as specialized soil treatments, operating through a vast network of facilities and a fleet of bright green trucks.

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Disclosure: None. This article is originally published at Insider Monkey.