Littlejohn & Co. has signed an agreement to acquire Strategic Materials, a provider of environmental services and the largest glass recycler in North America, from Willis Stein & Partners and Vision Capital. Willis Stein first invested in Strategic Materials in October 2005 and Vision Capital acquired an interest in the company in August 2012.
Strategic Materials is a recycled glass and plastic processor. The company reprocesses post-industrial and post-consumer scrap material into recycled products that are used by manufacturers of glass packaging, fiberglass insulation, flat glass and highway safety bead markets.
Strategic Materials, led by President and CEO Denis Suggs, operates a network of 47 facilities across the US, Canada and Mexico and is headquartered in Houston (www.strategicmaterials.com).
“Strategic Materials is a market leader with a unique customer value proposition and several actionable growth opportunities,” said Brian Michaud, a Principal at Littlejohn. “As recycled product demand and sustainable manufacturing practices have become a priority for numerous markets worldwide, we believe Strategic Materials is at the forefront to meet those product needs and services on a much larger scale. We are excited to partner with Denis Suggs and his team to support Strategic Materials’ growth objectives.”
Littlejohn makes control and non-control investments in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth. The firm invests from $50 million to $150 million of equity in middle market companies that have annual revenues of $100 million to $800 million. Littlejohn invests across a range of industries and acquires manufacturers, distributors, and service providers. The firm is currently investing from Littlejohn Fund V which has $2 billion in capital commitments. Littlejohn is based in Greenwich, CT (www.littlejohnllc.com).
“This is an exciting new chapter for our company. Littlejohn has deep expertise in helping industrial companies reach their full potential, and we are pleased they have recognized the opportunities in our business,” said Mr. Suggs. “We also thank our former partners, Willis Stein and Vision Capital, who enabled us to grow our domestic footprint and enhance our product offerings with multiple acquisitions.”
Willis Stein invests in middle market companies with enterprise values ranging between $30 million and $500 million. Sectors of interest include infrastructure services, niche manufacturing, and education services. Since 1989, the firm has invested more than $3 billion of equity capital in more than 200 transactions. The firm is based in Chicago (www.willisstein.com).
Vision Capital makes investments in European and the US transactions with valuations of $50 million to $500 million. Sectors of interest include financial services, specialty manufacturing and consumer. Since 2002, the firm has raised 15 investment partnerships with over $2.5 billion of capital. Vision Capital has offices in London and New York (www.visioncapital.com).
Moelis & Company and Houlihan Lokey are acting as financial advisors to Strategic Materials.
The transaction is expected to close in November 2017.
© 2017 Private Equity Professional | October 17, 2017
