MONTREAL – A Toronto-based company is buying TransForce’s waste management business in Quebec and eastern Ontario for $800 million.
Montreal-based TransForce (TSX:TFI) — which owns the Canpar parcel delivery operation and numerous other transportation companies — says it will be exiting the waste management business when the deal closes Feb. 1.
GFL Environmental will be purchasing TFI’s Matrec solid waste business, which includes landfill, transfer station and recycling operations.
Included in the deal is the Lafleche landfill in eastern Ontario, close to the Ottawa market.
GFL says it expects to issue equity to new and existing stockholders, get bank financing and issue high-yield debt to pay for the deal.
GFL may issue up to $100 million in shares to TransForce as part of the transaction and giving TFI president and CEO Alain Bedard a seat on the Toronto-based company’s board of directors. Otherwise, TransForce says it will get $775 million in cash when the deal closes and an $25-million interest-paying note repayable four years later.