(Bloomberg) -- GFL Environmental Inc. has received interest from several buyers for its environmental services business and expects to sign a deal by early next year.
The Vaughan, Ontario-based waste management company expects to net a minimum of C$6 billion ($4.3 billion) after tax from the sale, Chief Executive Officer Patrick Dovigi said in a statement accompanying its third quarter results. GFL will use the money to repay at least C$3.5 billion of debt with the remainder available for share buybacks or other purposes, he said.
The company’s stock price hit an all-time high of C$62.71 on Thursday at 9:57 a.m. Toronto time.
GFL has narrowed the offers to four bids, and tax implications will be a determining factor in the decision, Dovigi said on a call with analysts Thursday.
“Given the increase in the enterprise value of what we initially thought, structuring is very relevant to us today because as the enterprise value goes up, so does the tax bill,” he said.
GFL became one of North America’s largest waste management companies in recent years by rapidly acquiring rivals in the US and Canada. But the debt used to finance that growth has become a concern for investors, prompting the company to begin looking for buyers for less profitable businesses.
GFL has also been under scrutiny recently after a string of reports of gunfire and arson targeting its operations around the province of Ontario. Last week, shots were fired at one of GFL’s Toronto offices, after Canadian media reported similar incidents at Dovigi’s home and at the home of a consultant working for the group.
The Globe and Mail newspaper also reported police are investigating fires at three Ontario locations tied to GFL Environmental and a sister company this summer as potential arson.
Dovigi said on the Thursday call that police are investigating the incidents and that GFL is cooperating. The company is also working with a third-party consultant to review security measures, he said.
The company reported revenue of C$2.01 billion ($1.4 billion) and earnings of 33 Canadian cents per share on an adjusted basis, slightly below the analysts’ estimates.
(Updates with share price information and context from the conference call. A previous version corrected the likely timing of a deal.)
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