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.

Apollo Global Management and BC Partners have reached an agreement to acquire GFL Environmental's Environmental Services business in a deal valued at $8 billion.

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 Inc. announced that it has entered into a definitive agreement with funds managed by affiliates of Apollo and BC Partners for the sale

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 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