Littlejohn & Co. LLC, a private investment firm based in Greenwich, Conn., has signed a definitive agreement to acquire Strategic Materials Inc., an environmental services company and glass recycler, from Willis Stein & Partners and Vision Capital. Financial terms of the transaction were not disclosed.
Headquartered in Houston, Strategic Materials recovers and processes post-consumer and post-industrial glass in North America. Strategic Materials operates a network of 47 facilities across the U.S., Canada and Mexico and serves end markets, including glass packaging, fiberglass insulation, flat glass and highway safety bead markets, with a rapidly expanding presence in the air blast abrasives industry.
“Strategic Materials is a market leader with a unique customer value proposition and several actionable growth opportunities,” Littlejohn Principal Brian Michaud said in a statement. “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.”
“This is an exciting new chapter for our company,” Strategic Materials President Denis Suggs said in a statement. “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.
Moelis & Company LLC and Houlihan Lokey Inc. are acting as financial advisors, and Kirkland & Ellis LLP is acting as legal counsel to Strategic Materials. Gibson, Dunn & Crutcher LLP is providing legal counsel to Littlejohn.