GFL Environmental Inc. is exploring a potential take-private transaction following expressions of interest from various buyout firms. The North American waste management company has engaged advisors to review its options. This development was initially reported in early July, and GFL subsequently confirmed in mid-September that it had received multiple unsolicited offers.
CEO Patrick Dovigi stated that the offers are "materially higher" than the company's current market valuation of approximately $20.9 billion. While GFL's stock traded at $41.81 per share on the NYSE after the news, analysts indicate bids ranging from $50 to $55 per share, suggesting the company may be undervalued. Dovigi, who controls about a quarter of GFL through multiple voting shares, indicated he is not a seller of his equity at prices like $40, $50, $60, or even $70 per share, and plans to roll over 100% of his equity into any proposed deal. He highlighted that private ownership could enable the company to execute its strategies more rapidly.
A special committee of independent board members has been formed to evaluate these offers, with a financial advisory bank assisting in the review process. The company's prior experience with private equity backers, including Roark Capital, HPS Investment Partners, Ontario Teachers' Pension Plan, and BC Partners, has been instrumental in its growth-by-acquisition strategy. GFL recently held talks with Apollo Global Management, which, along with BC Partners, acquired a majority stake in GFL's environmental services division for $6.2 billion in early 2025. Two of the parties that approached GFL about privatization reportedly recognized the value of the Secure Waste Infrastructure Corp. acquisition, a $5.4 billion deal that previously faced analyst scrutiny and caused GFL shares to slump by 10% upon its announcement.
Despite the company's unprofitability, its Price-to-Sales (P/S) ratio of 3.09, slightly above its historical median of 2.8x, reflects market expectations for future growth. GFL's GF Score™ is 67 out of 100, indicating solid growth but weak profitability and financial strength. GuruFocus estimates GFL's intrinsic value at $45.27 per share, suggesting it is approximately 6.6% undervalued relative to its then-current price of $42.29. The formation of the special committee and interest from multiple private equity firms suggest potential for unlocking shareholder value, though the outcome remains uncertain.
