Energy Capital Partners in Advanced Talks to Buy Minority Stake in GFL Infrastructure Affiliate for $3.1 Billion

Energy Capital Partners is reportedly in advanced negotiations to acquire a minority stake in GFL Environmental's infrastructure affiliate, Green Infrastructure Partners, valuing the business at CAD 4.25 billion ($3.1 billion) including debt. The deal would allow shareholders to partially cash out and raise capital for growth.

GFL Environmental Inc. (NYSE: GFL) has entered into a definitive agreement with Energy Capital Partners (ECP) to recapitalize its infrastructure affiliate, Green Infrastructure Partners (GIP), at an enterprise value of CAD 4.25 billion ($3.1 billion) [1]. The deal is expected to close on or about September 2, 2025.

Under the agreement, GIP will receive aggregate gross proceeds of CAD 775.0 million, of which CAD 585.0 million will be returned to shareholders, and CAD 175.0 million will be applied to the balance sheet to fund future growth. GFL will receive approximately CAD 200.0 million of the shareholder distribution. Post-transaction, GFL will own an approximate 30.1% interest in GIP, valued at CAD 895.0 million.

Patrick Dovigi, Founder and Chief Executive Officer of GFL, commented, "The recapitalization of GIP at an enterprise value of CAD 4.25 billion is a testament to the quality of the business its management team has built since we started GIP in April 2022." The proceeds from the transaction will be used for general corporate purposes, including deleveraging the balance sheet, executing on growth strategies, and pursuing opportunistic share buybacks.

ECP, a leading investor in critical infrastructure, will partner with GIP on this transaction. Drew Brown, Partner at ECP, stated, "We see significant tailwinds for GIP's essential, vertically-integrated infrastructure offerings. This transaction will provide GIP with access to significant capital to execute on a compelling M&A pipeline."

The transaction is expected to position GIP for significant growth and value creation in the near term. Scot French, Founding Partner and Co-President of HPS Investment Partners, noted, "We congratulate management on this significant milestone and thank our longstanding partners at GFL for their vision and steadfast execution in building Canada's premier infrastructure service provider."

References
[1] https://www.prnewswire.com/news-releases/gfl-environmental-inc-announces-agreement-to-recapitalize-green-infrastructure-partners-at-an-enterprise-value-of-4-25-billion-with-investment-from-energy-capital-partners-302524359.html