Littlejohn & Co. LLC, a private investment firm based in Greenwich, Connecticut, has announced the signing of a definitive agreement to acquire Strategic Materials Inc. (SMI), a leading environmental services company and the largest glass recycler in North America, from Willis Stein & Partners, Northbrook, Illinois, and London-based Vision Capital. Financial terms of the transaction were not disclosed.
Headquartered in Houston, SMI recovers and processes postconsumer and postindustrial glass, operating a network of 47 facilities across the U.S., Canada and Mexico. The company’s end markets include glass packaging, fiberglass insulation, flat glass and highway safety beads, as well as the air blast abrasives industry. When used in container glass and fiberglass insulation production, SMI’s cullet saves energy and reduces carbon emissions by up to 30 percent compared with using virgin materials.
“Strategic Materials is a market leader with a unique customer value proposition and several actionable growth opportunities,” says 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 SMI’s growth objectives.”
Denis Suggs, president and CEO of SMI, says, “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. Littlejohn’s investment is a strong endorsement for SMI and our employees and will further advance the Strategic Materials Operating System (SMOS), which is rooted in continuous improvement, strategic growth and relentless execution. 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.”
The transaction is subject to customary closing conditions and is expected to close in November 2017, Littlejohn says.
Moelis & Co. LLC and Houlihan Lokey Inc. are acting as financial advisors, and Kirkland & Ellis LLP is acting as legal counsel to SMI., while Gibson, Dunn & Crutcher LLP is providing legal counsel to Littlejohn.