Investing.com -- Gfl Environmental (TSX:GFL) Holdings Inc (NYSE:GFL) is exploring the sale of a stake in its infrastructure arm, Green Infrastructure Partners Inc., in a potential deal that could value the business at around C$5 billion ($3.7 billion) including debt, Bloomberg reported, citing people familiar with the matter. The development underscores growing investor interest in Canadian civil infrastructure as major funds line up to participate.
The Markham, Ontario-based company has held early-stage talks with private equity firms including General Atlantic, Energy Capital Partners (WA:CPAP), and Neuberger Berman, the people said. The transaction, if completed, would mark one of the largest infrastructure-related deals in Canada this year.
Green Infrastructure Partners operates separately from GFL’s core solid waste and environmental services business, providing services such as road building, paving, and site development. The unit has grown rapidly in recent years through a series of acquisitions, making it a strategic asset in Canada’s expanding civil infrastructure sector.
For GFL, the sale of a stake would unlock capital to support Green Infrastructure Partners’ continued expansion while monetizing a high-growth division. The move comes amid strong private capital flows into infrastructure, with investors broadly seeking stable cash-generating assets amid market volatility.
Shareholders of GFL, including HPS Investment Partners, are involved in the ongoing discussions, though no final decisions have been made. The structure, size, and timing of any potential sale remain under consideration.
While the process is still in its early stages, additional interest from other strategic or financial bidders is possible, said sources. A transaction would mark another significant portfolio reshuffle by GFL as the company refines its long-term strategic focus.