SEATTLE (Recycling Monster): According to local media reports, GFL Environmental is set to sell 73 municipal collection contracts in Detroit area to Priority Waste. The deal, covering approximately 700,000 customers, 500 trucks and nearly 800 employees, is expected to make Priority Waste the largest residential service provider in the entire state of Michigan. The deal is expected to close by end of this month.

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According to sources, the sale deal represents an annual revenue of approximately $150 million. The proceeds of the transaction will be used by GFL Environmental to pay down its revolving credit agreement. The transaction is part of company’s previously stated goal to reduce its debt leverage and boost margins. The company, during the recent earnings call, had hinted that it was assessing low-margin residential contracts to generate revenues of around $150 million.

GFL Environmental had made an entry into the U.S. market in 2016, with the purchase of Rizzo Environmental Services. Since then, it has scaled higher significantly, through a series of acquisitions. The company has been focusing on optimizing its business over the past several years.

GFL Environmental still runs collection contracts in other regions of Michigan.