GFL Rejects Takeover Offer at 13% Premium, Sticks With Public Listing
Key Facts
GFL Environmental has concluded its review of unsolicited proposals to acquire the company and take it private, and its board unanimously reaffirmed its strategy of remaining publicly listed, according to a company statement published on November 10, 2026. The special committee said the proposals did not serve the company’s interests in light of its long-term value-creation opportunities. The outcome follows a proposal review process that ended with a November 9 deadline for updated bids. According to a report by The Globe and Mail, the rejected offer represented a 13% premium to the stock’s Monday closing price. But board members asked investors for an offer of $58 a share or more, and the consortium did not meet that request.
GFL shares closed at $45.88 in New York on November 9, according to EL7 data. The offer was 13% above that day’s closing price, according to the report published in The Globe and Mail, while the price sought by the board exceeded $58 a share. These figures reflect a gap between the offer value cited in the report and the board’s valuation of the company. The company statement did not disclose the offer amount or its financial details, while the newspaper reported the negotiation terms and the premium attributed to the offer. The review therefore ended without an agreement to take the company private.
GFL’s case for remaining independent rests on strong third-quarter operating results, according to company data. Revenue rose to C$2,155.3 million, up 27.2% year over year, with 5.7% of the growth coming from core pricing. Organic revenue growth reached 7.4%, accelerating by 100 basis points from the previous quarter. Adjusted earnings before interest, taxes, depreciation and amortization rose 26.8% to C$678.7 million, compared with C$535.1 million in the third quarter of 2025. These indicators provide an operating basis for the committee’s reasons for rejecting the offers, as it maintained its focus on long-term value-creation opportunities.
But growth in adjusted earnings coincided with a decline in net results from continuing operations. The company reported a loss of C$28.0 million in the third quarter of 2026, compared with net income of C$90.4 million in the same period a year earlier. GFL, meanwhile, raised its fiscal 2026 revenue guidance to a range of C$8,055–8,075 million, from C$7,510–7,530 million in its previous guidance. It also raised its adjusted free cash flow forecast to about C$1,020 million, compared with C$900 million previously. Chief Executive Patrick Dovigi said strong results year to date and an expected contribution from the SECURE acquisition supported the third guidance increase of the year.
Alongside its annual outlook, GFL said its cash flow profile allows it to target doubling free cash flow per share over the next five years. That target is central to management’s bet on the value the company can generate as a listed business, rather than accepting a takeover offer that did not meet the board’s price request. In a parallel development, The Globe and Mail reported that the company plans to allow shareholder BC Partners to sell a large portion of its 13% stake to outside investors. That could give investors an opportunity to buy shares from one of the largest shareholders after the offer review concluded. GFL said the special committee would determine next steps after the November 9 deadline for updated bids passed.
The valuation comparison cited in the newspaper report provides further context for the board’s position. The report estimated that the offer equated to about 12 times expected 2027 earnings, compared with an average of 14 to 16 times for leading publicly traded companies in the sector. The disparity suggests the offer was rejected amid a valuation that the coverage characterized as below the multiples of listed peers, alongside GFL’s higher revenue and cash flow forecasts. After concluding the review, the company remains on course as a public entity while the committee considers its next steps. The stated target of doubling free cash flow per share covers the next five years.