TORONTO,
July 6, 2021 /CNW/ - GFL
Environmental Inc. ("GFL") announced today that it has formed the
Resource Recovery Alliance ("RRA") in response to the Government of
Ontario's extended producer
responsibility regulation requiring product and packaging producers
("producers") to operate and fully finance Ontario's Blue Box program. RRA will become a
producer responsibility organization ("PRO") under the new
legislation and will be vertically integrated within GFL's service
offerings.
GFL also announced today that RRA has entered into a definitive
agreement to acquire Canadian Stewardship Services Alliance
("CSSA"). With the acquisition, RRA will be a comprehensive
resource recovery and compliance solution for producers in
North America, augmenting GFL's
existing capabilities in collection, sorting, processing,
marketing, and reporting of blue box material in Ontario.
"Ontario has ushered in a new
wave of extended producer responsibility in Canada, bringing increased responsibilities
for producers, along with new opportunities to innovate and drive
greater efficiencies and environmental outcomes," said Patrick Dovigi, GFL founder and CEO. "RRA will
combine GFL's extensive international footprint and depth of
experience in North America's
resource recovery sector with CSSA's leadership in compliance and
administration of recycling programs across Canada. CSSA's in-depth understanding of
producers and the new and much more rigorous regulatory needs makes
them an ideal partner for GFL in the creation of this PRO."
Through RRA, producers will have the benefit of a proven,
reliable, and experienced environmental services partner that can
leverage economies of scale and efficiencies, positioning them to
meet their responsibilities under the modern and consolidated Blue
Box Program, which will phase in between 2023-25.
"RRA will bring the experience and expertise of GFL, CSSA, and
producers together and provide consumer brands with sustainable
solutions they can trust," added Dovigi. "RRA will establish a
Producer Alliance Council and directly involve producers in
designing the new program. RRA will work collaboratively with the
Council to identify, define, monitor, and meet the new and
ambitious program expansion, standardization and recovery targets
designated by the Government of Ontario."
"This new model of resource recovery announced by the Government
of Ontario will be a catalyst for
change in the province, and in other jurisdictions across the
country looking at extended producer responsibility programs," said
John Coyne, CSSA Executive Chair.
"GFL's coast-to-coast operations and diversified service offerings
coupled with CSSA's compliance and administration expertise
presented an exemplary partnership opportunity. Together, we will
support producers in meeting their new obligations in Ontario while also ensuring seamless
transition and harmonization with new EPR regimes anywhere in
Canada, and North America, in the future."
GFL is North America's fourth
largest diversified environmental company, focused on providing
customers with solutions that increase recovery of valuable
resources, including composting of organic material, recovery of
paper, packaging and construction waste, creation of renewable
green energy and securing leading prices in selling commodities. In
Ontario, GFL already has
capabilities to recover much of Ontario's blue box materials with five
material recovery facilities, 15 transfer stations, and over 750
collection trucks. GFL has also designed, built, and currently
operates several technologically advanced facilities in partnership
with municipalities across the province.
The acquisition of CSSA, which is subject to customary closing
conditions, is expected to close in the third quarter of 2021.
About GFL
GFL, headquartered in Vaughan, Ontario, is the fourth largest
diversified environmental services company in North America, providing a comprehensive line
of non-hazardous solid waste management, infrastructure & soil
remediation and liquid waste management services through its
platform of facilities throughout Canada and in 27 states in the United States. Across its organization,
GFL has a workforce of more than 15,000 employees.
Forward-Looking Information
This release includes
certain "forward-looking statements", including statements relating
to the potential acquisition of CSSA and RRA becoming a PRO. In
some cases, but not necessarily in all cases, forward-looking
statements can be identified by the use of forward looking
terminology such as "plans", "targets", "expects" or "is expected",
"intends", or "believes", or variations of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might", "will" or "will be taken", "occur" or
"be achieved". Forward-looking statements are not guarantees or
assurances of future performance but instead represent management's
current beliefs and expectations regarding future events.
Forward-looking statements are necessarily based on a number of
opinions, assumptions and estimates that, while considered
reasonable by GFL as of the date of this release, are subject to
inherent uncertainties, risks and changes in circumstances that may
differ materially from those contemplated by the forward-looking
statements. There can be no assurance that such estimates and
assumptions will prove to be correct. You should not place undue
reliance on forward-looking statements, which speak only as of the
date of this release. GFL undertakes no obligation to publicly
update any forward-looking statement, except as required by
applicable securities laws.
For more information contact:
Investor Relations,
Patrick Dovigi
+1 905-326-0101
pdovigi@gflenv.com
Media Relations
Colleen Ryan
+1 647-232-6867
cryan@sussex-strategy.com
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SOURCE GFL Environmental Inc.