KKR, Blackstone, and others are bidding for GFL Environmental (GFL.US), a deal that could become one of the largest leveraged buyouts of the year.

KKR, Energy Capital Partners, and Blackstone are reportedly seeking to jointly bid for environmental services company GFL Environmental (GFL.US), while Bruker Corporation Field Asset Management and IFM Investors have teamed up to launch a competing bid. The news drove GFL Environmental's stock price up more than 10% in after-hours trading on Wednesday, US Eastern Time. The report said a decision on the deal could be made in the coming weeks, and the transaction could become one of the largest leveraged buyouts of the year. People familiar with the matter said no final decision has been made, the timeline may change, other bidders may join, and the existing consortium may also be reconfigured. The report noted that GFL Environmental's special committee may need time to evaluate the proposals and may ask bidders to raise their offers. The company formed a special committee in July to oversee potential merger or privatization negotiations after receiving preliminary acquisition interest. CEO Patrick Dovigi took the company public in 2020, and he said at the time that he would roll all of his shares into any potential transaction, a structure typically associated with leveraged buyouts. It is understood that GFL Environmental is one of the largest waste management companies in North America, with about 15,000 employees in the United States and Canada, operating recycling facilities, transfer stations, and landfills. As of the last close, its market value was close to $18 billion. CEO says he will continue to helm the company Dovigi said in an interview that regardless of the strategic outcome, he intends to continue leading the company and retain ownership. "I am very pleased with where the company is right now," he said, adding that he does not plan to leave the company he has led for nearly two decades. He also said GFL Environmental is only now entering its "third phase" of development and reiterated his confidence in the company's prospects, saying it is at an "exciting moment." Institutions and retail investors are optimistic and bullish On Stocktwits, the number of followers of GFL Environmental stock has increased by more than 11% over the past 12 months, and during that period retail sentiment toward the stock rose from "neutral" to "bullish." One user said earlier this week: "We may see an acquisition this week; before the Fed raises rates, the acquirer can replace fixed-rate debt at a lower interest rate." Koyfin data shows that the 21 analysts covering GFL Environmental give it a consensus "buy" rating, with an average price target of $52.63, implying about 28% upside from the current stock price. As of press time, GFL Environmental rose 4.67% in premarket trading to $42.99.