The Carlyle Group, a global investment firm based in Washington, has announced that it has agreed to sell Pittsburgh-based Liberty Tire Recycling to ECP, an investor with a reputation in the environmental and sustainable solutions sector. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2021.
Liberty, a tire recycling services provider, has a network of more than 25 processing plants and flexible collection service offerings nationwide. According to a news release from the Carlyle Group, Liberty saves more than 190 million tires per year from the waste stream, recycling approximately 3 billion pounds of rubber for sustainable materials and products. Carlyle Strategic Partners IV, an investment fund managed by Carlyle, led a recapitalization transaction to become the company’s majority equity sponsor in December 2017.
“Carlyle’s investment thesis for Liberty centered on the company’s attractive growth characteristics and the ability to create a national provider operating at the nexus of beneficial reuse and sustainable materials production,” says Evan Middleton, co-head of North America for Carlyle Strategic Partners. “We are confident that Liberty will continue to create value in an exciting market under the ownership of ECP.”
“Liberty occupies a key position in the recycling industry and is part of a vital sustainability supply chain in North America,” says Tyler Reeder, managing partner of ECP. “As consumers and manufacturers commit to greener and more sustainable products and practices, Liberty’s ability to provide sustainable materials and solutions for a growing number of applications will only make the company a stronger and more sought-after partner.”
Thomas Womble, CEO of Liberty Tire Recycling, adds, “Under Carlyle’s leadership, Liberty transformed into a national company with strong assets, broad capabilities and innovative products. We are excited to partner with ECP as we continue our growth trajectory and increase our capacity to recycle tires into a wide range of beneficial, eco-friendly products.”
According to a news release from Carlyle Group, financial details of the transaction were not disclosed. Houlihan Lokey is serving as the lead financial advisor, BMO Capital Markets is serving as co-financial advisor and Latham & Watkins is serving as legal advisor to Liberty Tire Recycling. Kirkland & Ellis LLP is serving as legal advisor to ECP.