GFL Environmental Inc. completed the sale of solid waste operations in Colorado and New Mexico markets to Phoenix-based Republic Services, effective June 1, 2023.
The divestiture was one of three in a series for the Toronto-based environmental services provider, which acquired the assets as part of previous, larger transactions. The deal was completed one fiscal quarter sooner than anticipated, according to Patrick Dovigi, GFL founder and CEO.
"These divestitures complete our portfolio rationalization plan," Dovigi commented, following the announcement. "We believe our network of assets and market selection position us for high quality, organic profitability growth and we remain focused on our M&A strategy of densifying our existing footprint across Canada and the United States through our robust acquisition pipeline."
He added that the closing of the three planned divestitures results in C$1.6 billion of gross proceeds, which will appear on GFL's balance sheet on June 30. In addition to its Colorado and New Mexico operations, the company completed the sale of its Nashville operations as of May 1, 2023. The divestiture of its Pennsylvania, Maryland and Delaware operations will close on June 30.
As a result, Republic Services expanded its recycling, collection and disposal assets in Colorado, most notably Denver, Colorado Springs, Durango and Cañon City, and it added services in Bloomfield, New Mexico.
"We look forward to delivering exceptional customer service to these new commercial and residential customers and welcome our new employees to the Republic team," said Ryan Lawler, area president, in a statement. "This transaction reinforces our commitment to our Colorado and New Mexico communities."