The waste management giant can use cash proceeds from the sale to Apollo and BC Partners to pay down its existing debt, but the complex transaction will add new debt

By Anshuman Tripathy (Reuters) -GFL Environmental said on Tuesday it would sell its environmental services division in a deal valued at C$8 billion ($5.59 billion), as the Canadian waste management company aims to pare debt and buy back shares.

GFL Environmental is selling stake in its Environmental Services business to Apollo Global Management and BC Partners.

GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL" or the "Company") today announced that it has entered into a definitive agreement (the "Transaction Agreement") with funds managed by affiliates of Apollo (NYSE:APO) (the "Apollo Funds") and BC Partners (the "BC Funds") for the sale of its Environmental Services business for an enterprise value of $8.

GFL will retain a 44% stake in the division, with the option to repurchase within five years. The news marks a turning point in the company’s effort to reduce its debt leverage.

GFL sells stake in enviro unit: Private equity groups Apollo Global Management and BC Partners have agreed to buy a controlling stake in TSX-listed GFL Environmental Inc.‘s environmental services business.

GFL Environmental will sell its environmental services division to Apollo Global Management and BC Partners in a deal valued at C$8 billion ($5.59 billion), the Canadian waste management company said on Tuesday.

GFL Environmental (NYSE:GFL) said it will sell its Environmental Services business to funds managed by affiliates of Apollo (NYSE:APO) and BC Partners, for an enterprise value of C$8 billion deal. The firm will retain a C$1.