GFL Environmental eyes biggest drop since 2020 on Secure Waste deal

GFL Environmental

13/04/2026 17:11

Updates stock activity, adds analyst commentary

** U.S.-listed shares of GFL Environmental GFL.N tumble 9.4% to $39 on Mon after ~$4.6 bln deal to buy peer Secure Waste Infrastructure SES.TO

** GFL shares on track for largest daily percentage drop since COVID pandemic onset in Mar 2020

** The deal gives GFL access to Secure’s extensive network of waste processing and disposal assets across Western Canada and North Dakota

** GFL to acquire all outstanding shares of Secure at C$24.75 apiece, representing ~16% premium to Secure's last close, in combination of 80%/20% stock/cash

** TD Cowen, which rates GFL 'buy', says in note the stock is selling off as investors likely feel co overpaid (11-12x EV/EBITDA) for a business with greater cyclical exposure than its traditional solid waste business

** GFL's debt-fueled expansion previously raised investor concerns, leading to a strategic review and the sale of underperforming assets last yr

** With the move on the session, U.S.-listed shares down ~9% YTD and ~19% over the past 12 months

($1 = 1.3836 Canadian dollars)

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))