GFL Environmental announced that Green Infrastructure Partners (GIP) has entered into a definitive agreement with funds managed by Energy Capital Partners (ECP) to recapitalize its business at an enterprise value of $4.25 billion.
GIP is a leading vertically integrated infrastructure company established in 2022 by GFL, funds managed by HPS Investment Partners, and Patrick Dovigi.
Upon closing the transaction, GIP will receive aggregate gross proceeds of $775 million, of which it intends to return approximately $585 million to its shareholders and apply $ 190 million to its balance sheet to fund future growth. GFL will receive roughly $200 million of the $585 million shareholder distribution.
Pro forma for the transaction, GIP’s total equity value will be approximately $3.0 billion. Following the distribution of approximately $200 million to GFL, GFL will own a roughly 30.1% interest in GIP, valued at approximately $ 895 million. HPS and Dovigi will each also continue to hold a minority stake in GIP and support the company’s future growth.
The deal is expected to close on or about September 2, 2025.
KEY QUOTES:
“The recapitalization of GIP at an enterprise value of $4.25 billion is a testament to the quality of the business its management team has built since we started GIP in April 2022. The approximately $200.0 million in proceeds that GFL will receive from the transaction will be used for general corporate purposes, including de-levering our balance sheet, executing on our organic and inorganic growth strategies, including our robust M&A pipeline, and pursuing opportunistic share buybacks, subject to market conditions. This transaction allows GFL to monetize part of our position in GIP in a tax efficient manner, while still retaining a meaningful equity interest that will allow us to participate in what we expect to be continued value creation from the GIP business.”
“After a robust evaluation showing significant interest in GIP, the board of GIP selected ECP to partner with on this transaction. ECP is a leading investor in critical infrastructure, with deep expertise and a demonstrated track record of value creation for its stakeholders. We look forward to working with ECP on executing GIP’s growth strategy.”
“Over the years, I have re-iterated my belief that we could create $1.0 billion of value for GFL shareholders through our investment in GIP. Our original investment of approximately $250.0 million in 2022 has grown to approximately $1.1 billion in just over three years. That is a direct reflection of the strength of GFL’s management team and the execution of our strategies to create long term shareholder value. We believe that this recapitalization positions GIP to significantly exceed our original value expectations in the near term and sets the company up for an exciting period of growth.”
Patrick Dovigi, Founder and Chief Executive Officer of GFL
“We congratulate management on this significant milestone and thank our longstanding partners at GFL for their vision and steadfast execution in building Canada’s premier infrastructure service provider. We are proud to invest in companies like GIP and GFL that play an important role in maintaining and improving the critical infrastructure and essential services that people rely on every day. We look forward to continuing to partner with GFL in unlocking additional shareholder value together with GIP in its next chapter of growth.”
Scot French, Founding Partner and Co-President of HPS
“We see significant tailwinds for GIP’s essential, vertically-integrated infrastructure offerings. This transaction will provide GIP with access to significant capital to execute on a compelling M&A pipeline that we believe is particularly actionable in the near-term. With two decades of investing in North American infrastructure, ECP is well-equipped to act as a value-add partner with GIP, and we look forward to working with the talented GIP and GFL leadership teams to execute on a shared vision for growth and margin enhancement.”
Drew Brown, Partner at ECP
