(Corrects the dollar amounts in the headline and throughout the story's body.)

GFL Environmental (GFL) said Tuesday it has signed a deal with funds managed by Apollo Global Management (APO) and BC Partners to sell its environmental services operations for 8 billion Canadian dollars ($5.59 billion) in enterprise value.

The company will keep CA$1.70 billion equity ownership in the business and anticipates realizing cash proceeds of about CA$6.20 billion net of the retained equity and taxes, it added.

GFL said it plans to use up to CA$3.75 billion of the net proceeds for the repayment of debt, up to CA$2.25 billion for stock buyback, and the balance for general corporate purposes.

GFL will maintain a 44% equity ownership in the business, while Apollo Funds and BC Partners will each have a 28% equity stake, according to GFL.

The deal, expected to close in Q1, is not subject to any financing requirements, the company said.

GFL shares rose over 3% in recent Tuesday premarket activity.