GFL Environmental to recapitalize Green Infrastructure Partners for $4.25B

GFL Environmental (GFL) announced that Green Infrastructure Partners has entered into a definitive agreement with funds managed by Energy Capital Partners, or ECP, to recapitalize its business at an enterprise value of $4.25B. GIP is vertically integrated infrastructure company established in 2022 by GFL, funds managed by HPS Investment Partners and Patrick Dovigi. On the closing of the transaction, GIP will receive aggregate gross proceeds of $775.0M, of which it intends to return approximately $585.0M to its shareholders and apply $175.0M to its balance sheet to fund future growth. GFL will receive approximately $200.0M of the $585.0M shareholder distribution. Pro forma for the transaction, GIP’s total equity value will be approximately $3.0B. After the distribution to GFL of approximately $200.0M, GFL will own an approximate 30.1% interest in GIP valued at approximately $895.0M. HPS and Dovigi will each also continue to hold a minority stake in GIP and support the company’s future growth. The transaction is expected to close on or about September 2.