GFL Environmental Inc. has announced a $5.4-billion acquisition of Calgary-based Secure Waste Infrastructure Corp., aiming to expand its presence in Western Canada. The deal values Secure at $24.75 per share, representing a 16 percent premium over its last closing price. GFL plans to finance the transaction primarily through a stock issuance, with Secure shareholders receiving a combination of 50 percent stock and 20 percent cash. If approved, Secure investors would hold about 16 percent of the combined company, and two major Secure shareholders, representing 20 percent of its shares, have already committed to supporting the deal.

The acquisition reflects GFL’s continued expansion strategy since its founding in 2007, during which it has completed more than 270 acquisitions across Canada and the United States. The company services numerous municipalities on both sides of the border and, prior to the announcement, had a market capitalization of approximately $22 billion on the Toronto Stock Exchange.

Market reaction was negative, with GFL’s shares dropping over 10 percent following the announcement. Analysts questioned the strategic rationale of acquiring a company that primarily operates in the industrial waste sector, diverging from GFL’s traditional municipal solid waste focus. GFL’s CEO, Patrick Dovigi, addressed these concerns, emphasizing that the deal does not signal a shift in strategy. He stated that the majority of GFL’s capital spending will continue to concentrate on solid waste operations and ruled out further expansion into industrial waste, framing the acquisition chiefly as a move to increase GFL’s exposure to Western Canada, a region the company views as a key economic growth area.

Secure Waste Infrastructure generates roughly 85 percent of its revenue from industrial waste management, including processing and disposal services for energy and industrial sectors, with the remaining 15 percent derived from operating energy infrastructure such as crude oil terminals and storage. Over the past five years, Secure’s shares have surged 430 percent, coinciding with its repositioning strategy that included a merger with Tervita Corp., divestitures of non-core oil field services, and acquisitions of metal recycling businesses. According to some analysts, Secure’s business has become more resilient and comparable to peers in residential and industrial waste management.

The purchase price equates to about 25.5 times Secure’s earnings—a valuation multiple that some market observers view as elevated given recent stock performance. GFL itself has faced a challenging stock environment; after a strong start following its Toronto Stock Exchange debut in 2020, its shares have declined 12 percent over the last year amid sell-offs in the municipal waste sector.

Investor concerns have also centered on GFL’s high debt levels, which reached $9.6 billion, prompting the company to sell a majority stake in its environmental services division in early 2025 to reduce leverage. GFL also secured an investment from private equity firm Green Infrastructure Partners Inc. for its infrastructure segment, providing $200 million in capital. This infrastructure division offers services including road paving, excavation, and demolition, with GFL retaining significant ownership in the partnership.

The acquisition announcement coincides with recent developments in a police investigation related to violent incidents targeting executives at GFL and affiliated companies. Authorities charged a competitor, Ilan Philosophe of Astro Excavating Inc., in connection with shootings at executives’ homes. Philosophe has denied any involvement and remains in custody as his case proceeds through the courts. The episodes have generated considerable attention within industry circles and on Bay Street, underscoring the complex environment surrounding GFL’s operations.

As GFL moves forward with the Secure acquisition, the deal underscores both the company’s ambition to broaden its geographic reach and the challenges of integrating a business with a distinct operational profile amid investor scrutiny and sector pressures.