Wisdom Capital Partners has partnered with Stanwich Partners and Ironwood Capital to acquire Advanced Recycling Systems, a manufacture of dust and debris collection equipment.
Advanced Recycling Systems (ARS) is a designer and manufacturer of equipment utilized in the collection, recycling and removal of dust and debris generated in industrial environments. Products include steel grit recyclers and dust collectors for the bridge painting, municipal water tank, shipbuilding and industrial market segments. ARS was founded in 1991 and is based in Lowellville, OH (www.arsrecycling.com).
“ARS is well positioned for future growth as an aging infrastructure in the US continues to require significant investment and attention. There is also a growing need for environmentally-friendly industrial solutions. ARS is poised to benefit from both drivers of demand, and we are delighted by this acquisition,” said Dominic Petito, President & CEO of Wisdom Capital.
Tom Herrmann, a Managing Director of Stanwich, will serve as interim CEO of ARS following the acquisition. “We were attracted by ARS’ reputation and the quality of its products, which are second to none in its industry. We believe the company’s prospects are excellent as ARS continues to gain share in its existing markets and enter new industrial markets where there is a need for recycling solutions,” said Mr. Herrmann.
“The shareholders of ARS were pleased to enter into this transaction which, among other things, provides the company with the resources and expertise to take advantage of growth opportunities that we couldn’t exploit on our own. We are all looking forward to taking the company to the next level and see a bright future ahead for ARS,” said Gus Lyras, a founder and shareholder of ARS.
Ironwood Capital provided financing for the transaction in the form of senior subordinated debt and equity. “We were pleased to partner with Wisdom and Stanwich to complete the ARS transaction and are excited about the prospects for ARS,” said Dickson Suit, partner at Ironwood Capital.
Comerica Bank provided senior debt financing for the transaction.
Wisdom Capital Partners makes control or minority investments of $1 million to $10 million in middle market companies that have revenues of at least $5 million and EBITDAs of at least $500,000. Sectors of interest include consumer, commercial and industrial, digital media, and financial services. The firm is based in Greenwich, CT (www.wisdomcapitalpartners.com).
Stanwich Partners invests in manufacturing and value-added distribution companies that have revenues from $5 million to $75 million and EBITDAs of at least $1 million. The firm is based in Wilton, CT (www.stanwichpartners.com).
Ironwood Capital invests in senior subordinated debt and equity securities in amounts ranging from $5 million to $25 million to support business owners and financial sponsors in leveraged buyouts, growth financings and recapitalizations. Typical investments are in companies with revenues of $10 million to $200 million and EBITDAs of at least $1 million. The firm is industry agnostic but has a specific interest in value added manufacturing, environmental services, healthcare products and services, specialty distribution, and the consumer products sectors. Ironwood Capital has $550 million of capital under management and is based in Avon, CT (www.ironwoodcap.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 1-8-13
