Liberty Tire to be acquired by equity firm

I Squared Capital, a Miami-based global infrastructure investment fund, has signed a definitive agreement to acquire Pittsburgh-based Liberty Tire Recycling from its current owner, Energy Capital Partners (ECP).

Summit, New Jersey-based ECP bought Liberty Tire from yet another funds manager in 2021, acquiring the multilocation end-of-life tire processor from The Carlyle Group. The Washington-based Carlyle organization became involved with Liberty Tire in 2018 as part of a refinancing maneuver.

Liberty Tire is an end-of-life tire recycling platform, providing comprehensive tire collection, processing and recycling solutions.

The transaction adds Liberty to I Squared's global portfolio of environmental infrastructure platforms and reinforces its commitment to building sustainable businesses that deliver both economic and environmental value.

I Squared lists more than 65 portfolio companies, including several with an energy sector presence plus Dallas-based bulk waste hauling firm Check Sammy and Houston-based specialty waste services firm VLS Environmental Solutions.

I Squared credits ECP, along with Liberty’s management team, as having bolstered Liberty Tire’s status as a national, vertically integrated tire management business, now operating a network of more than 50 facilities nationwide and collecting and processing more than 215 million end-of-life tires annually.

“Under I Squared’s ownership, Liberty will continue to lead in sustainable tire recycling solutions while advancing operational excellence for its 50,000-plus customers and more than 3,500 employees,” the new ownership group says.

I Squared plans to work with Liberty to invest in automation and technology to enhance efficiency and environmental performance and pursue strategic acquisitions that expand the company’s footprint.

“Liberty has been successful because of our people and their focus on our core values," Liberty CEO Thomas Womble says. "These core values include striving to keep employees safe, providing world-class customer service, partnering with manufacturers and retailers to help them achieve sustainability goals, and continuing to develop and grow new markets in the end-of-life tire space. ECP has been a great partner to Liberty, and we are now looking forward to continuing the journey in partnership with I Squared.”

“I Squared's investment in Liberty Tire Recycling reflects our continued focus on building resilient, sustainable infrastructure platforms that drive both economic and environmental impact,” says Gautam Bhandari, a managing partner at I Squared Capital. “We are excited to partner with the Liberty team and support the company's continued growth and innovation within the recycling industry.”

BMO Capital Markets and Jefferies served as financial advisors to Liberty, and Latham & Watkins served as its legal advisor. Houlihan Lokey acted as financial advisor to I Squared and Kirkland & Ellis LLP served as its legal advisor.

“We are proud to have worked alongside the Liberty team as we strengthened its leading position in the recycling industry and achieved tremendous growth through strategic initiatives and investments,” says Drew Brown, a partner at ECP.