GLF Environmental: BMO Predicts Sovereign/PE Consortium Takeover
Investing.com — BMO analysts have insights into the potential takeover of GFL Environmental Holdings by a consortium of sovereign wealth funds and private equity (PE) firms. The financial institution suggests that this consortium is currently in a favorable position to take control from the current PE ownership.
In discussions with GFL’s management, BMO has outlined two possible outcomes for the situation. The first scenario involves new management gradually displacing the current PE owners – BC Partners, OTPP, and GIC. This would lead to a slow multi-year takeover of the company’s remaining assets.
Alternatively, the sale of GFL’s environmental Services division could be a potential outcome, with the same consortium of Sovereign wealth/PE firms likely to be in control. Clean Harbors, a Massachusetts-based company, has expressed interest in GFL’s waste management business. During the Stifel Cross Sector Insight Conference, Eric Gerstenberg, Co-CEO of Clean Harbors, mentioned that the potential sale of the division aligns with their interests.
Despite this interest, no formal offers have been made yet, and GFL’s management has indicated a preference for selling the entire division rather than individual assets. BMO considers an immediate full takeover of GFL’s assets to be less likely at this point due to the company’s size and complexity.
In conclusion, the future of GFL Environmental Holdings remains uncertain, with a sovereign/PE consortium takeover emerging as the most probable outcome according to BMO analysts. The potential sale of the company’s waste management business adds another layer of complexity to the situation. Investors and industry stakeholders will be closely watching for further developments in the coming months.