(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 Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL" or the "Company") today announced that it has entered into a definitive agreement (the "Transaction Agreement") with funds managed by affiliates of Apollo (NYSE:APO) (the "Apollo Funds") and BC Partners (the "BC Funds") for the sale of its Environmental Services business for an enterprise value of $8.

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.

GFL Environmental Inc. has signed a deal to sell a majority interest in its environmental services business to private equity firms Apollo and BC Partners in an agreement that will see it realize $6.2 billion in cash proceeds.

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.

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.