(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.

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 consortium is set to buy a 56% stake in the business,

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 Environmental is selling stake in its Environmental Services business to Apollo Global Management and BC Partners.

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 sells stake in enviro unit: Private equity groups Apollo Global Management and BC Partners have agreed to buy a controlling stake in TSX-listed GFL Environmental Inc.‘s environmental services business.

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