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.

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 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.

By Anshuman Tripathy (Reuters) -GFL Environmental said on Tuesday it would sell its environmental services division in a deal valued at C$8 billion ($5.59 billion), as the Canadian waste management company aims to pare debt and buy back shares.

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

GFL sells stake in enviro unit: Private equity groups Apollo Global Management and BC Partners have agreed to buy a controlling stake in TSX-listed GFL Environmental Inc.‘s environmental services business.