Canada’s GFL Environmental Inc. has agreed to buy Secure Waste Infrastructure Corp. for $6.4 billion, a deal that includes Secure’s waste management business in Western Canada and North Dakota, which consists of over 80 locations including 12 landfills, 55 waste treatment facilities, 12 recycling facilities, 98 injection wells, and five transfer stations.
“The acquisition of Secure will provide us with a highly complementary network of permitted waste processing and disposal assets that will densify our footprint in Western Canada, significantly enhance our scale and expand our ability to offer customers a full suite of waste management services,” GFL founder and CEO Patrick Dovigi said in a statement.
In a statement, Secure’s CEO Allen Gransch said, “The transaction will combine Secure’s hard to replicate infrastructure network with GFL’s broader platform, strengthening GFL’s ability to capture more waste streams across the value chain.”
Under the terms of the offer, Secure shareholders can choose to receive $24.75 in cash, 0.4195 of a GFL subordinate voting share, or a combination of both for each Secure share they hold, subject to limits to the total number of shares and cash available.
Cash available has been capped at 20 percent of the total payment to Secure shareholders, with GFL shares limited to 80 percent of the total amount to be paid under the deal, which is subject to shareholder approval and expected to close in the second half of the year. Secure shares were up $1.20 to $22.56 in trading on the Toronto Stock Exchange after the announcement was made, while GFL shares were down $1.89 to 59.62.
