GFL Environmental's Green Infrastructure Arm Set for Minority Stake Acquisition by Energy Capital Partners

Energy Capital Partners is set to acquire a minority stake in GFL Environmental's infrastructure arm, Green Infrastructure Partners, valued at C$4.25 billion. Analysts have set a one-year average price target for GFL Environmental at $56.08, implying a potential upside of 10.95% from the current price. However, GuruFocus estimates a significant downside for GFL, with a GF Value of $32.90.

Energy Capital Partners is reportedly in advanced negotiations to acquire a minority stake in GFL Environmental's (NYSE: GFL) infrastructure affiliate, Green Infrastructure Partners (GIP), valued at approximately C$4.25 billion ($3.1 billion), including debt. The proposed transaction would allow shareholders in the business to partially cash out while also raising capital for growth, according to Bloomberg [1].

GFL Environmental is a prominent player in the waste management industry, offering a comprehensive suite of environmental services, including non-hazardous solid waste management, infrastructure, soil remediation, and liquid waste management services. The company's solid waste management business line generates the majority of its revenue, encompassing the collection, transportation, transfer, recycling, and disposal of non-hazardous solid waste. GFL operates primarily in Canada and the United States, with the majority of its revenue derived from the U.S. market.

The acquisition of a minority stake in GIP by Energy Capital Partners is one of Canada's largest infrastructure transactions this year, highlighting strong investor demand for assets that generate stable cash flows. The competitive process drew interest from firms including General Atlantic and Neuberger Berman (NML), previously reported by Bloomberg News.

GFL Environmental recently announced an optimistic update to its financial outlook for 2025. The company has raised its revenue projections to a range of C$6.55 billion to C$6.575 billion and anticipates its adjusted EBITDA to be approximately C$1.95 billion to C$1.975 billion. This revision reflects GFL's robust performance amid ongoing economic uncertainties and low commodity prices [2].

Analysts have set a one-year average price target for GFL Environmental at $56.08, implying a potential upside of 10.95% from the current price. However, GuruFocus estimates a significant downside for GFL, with a GF Value of $32.90 [2].

The deal would be one of Canada’s largest infrastructure transactions this year, highlighting strong investor demand for assets that generate stable cash flows. The competitive process drew interest from firms including General Atlantic and Neuberger Berman (NML), Bloomberg News reported previously.

References

[1] https://seekingalpha.com/news/4480908/energy-capital-emerges-as-frontrunner-on-31-billion-gfl-deal---bloomberg
[2] https://www.gurufocus.com/news/3032356/gfl-environmental-gfl-enhances-2025-revenue-and-ebitda-forecasts