Canadian waste management giant GFL Environmental (GFL) is buying rival Secure Waste Infrastructure (TSE: SES) for C$6.4 billion ($4.62 billion U.S.).
Secure Waste operates a garbage collection and removal business in Western Canada and North Dakota. It has over 80 locations, including 12 landfills and 55 waste treatment facilities.
The acquisition further expands GFL Environmental’s footprint in Canada and the U.S. The company operates in all provinces of Canada and much of the United States.
GFL Environmental employs more than 20,000 people in North America.
Under terms of the deal, Secure Waste shareholders can choose to receive $24.75 per share in cash, 0.4195 of a GFL voting share, or a combination, for each Secure share that they own.
The plan caps the cash available at 20% of the total payment to Secure shareholders, while the GFL shares available under the bid are limited to 80% of the total amount to be paid.
The acquisition requires approval from regulators in Canada and the U.S., as well as Secure Waste’s shareholders. It is expected to be finalized in the second half of this year.
GFL stock has declined 12% in the past year to trade at $43.08 U.S. per share in New York.
