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

(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

GFL will retain a CA$1.7 billion equity interest in the business and expects to realize cash proceeds of CA$6.2 billion.

GFL Environmental will sell its environmental services division to Apollo Global Management and BC Partners in a deal valued at C$8 billion ($5.59 billion), the Canadian waste management company said on Tuesday.