Apollo Global Management Inc. and BC Partners agreed to acquire a controlling stake in GFL Environmental Inc.’s environmental services unit, in a deal that values the business at C$8 billion ($5.6 billion) including debt.

GFL Environmental is selling stake in its Environmental Services business to Apollo Global Management and BC Partners.

GFL will retain a 44% stake in the division, with the option to repurchase within five years. The news marks a turning point in the company’s effort to reduce its debt leverage.

GFL Environmental (NYSE:GFL) said it will sell its Environmental Services business to funds managed by affiliates of Apollo (NYSE:APO) and BC Partners, for an enterprise value of C$8 billion deal. The firm will retain a C$1.

The waste management giant can use cash proceeds from the sale to Apollo and BC Partners to pay down its existing debt, but the complex transaction will add new debt

GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL" or the "Company") today announced that it has entered into a definitive agreement (the "Transaction Agreement") with funds managed by affiliates of Apollo (NYSE:APO) (the "Apollo Funds") and BC Partners (the "BC Funds") for the sale of its Environmental Services business for an enterprise value of $8.

GFL will retain a CA$1.7 billion equity interest in the business and expects to realize cash proceeds of CA$6.2 billion.

(TSX: GFL) has entered into an arrangement to sell off a majority interest in one of its two operating segments. The sale, which is to occur at a valuation that