North American Environmental services firm GFL Environmental has entered a definitive agreement to acquire the solid waste and environmental solutions business of Terrapure Environmental and its subsidiaries for an aggregate purchase price of C$927.5 million. The acquisition will exclude the battery recycling business carried on by Terrapure.
Terrapure is an integrated provider of solid and liquid waste management and industrial services to more than 7,000 customers across Canada. Terrapure’s environmental and organics solutions cover a diverse range of waste streams from generation through collection, processing, recovery, recycling, reuse and disposal through its integrated network of assets including its landfill and its liquid and solid waste collection and processing facilities. Terrapure’s operations are supported by a fleet of over 500 collection vehicles and approximately 1,600 employees.
Terrapure’s operations to be acquired in the acquisition generated revenue of approximately C$365 million in 2020, inclusive of COVID-related volume impacts, according to the firm.
The acquisition seemingly advances GFL’s growth strategy and aligns with the company’s goal of growing its free cash flow. GFL said the move was expected to enhance the firm’s capabilities and reach (via a high quality and complementary asset network and customer base, and acquisitions such as the Stoney Creek landfill in Toronto), create significant synergies (“through operational opportunities from geographical and functional overlap between the existing operations” of both firms) and create long-term shareholder value.
