Littlejohn Acquires Strategic Materials

THURSDAY, OCTOBER 19, 2017


Littlejohn & Co. LLC, a private investment firm based in Connecticut, announced on Tuesday (Oct. 17) that it would be acquiring Strategic Materials Inc. (Houston), a company that doubles as the largest glass recycler in America and provider of environmental services, from Willis Stein & Partners and Vision Capital.

Business Backgrounds

Strategic Materials operates 47 facilities across the U.S., Canada and Mexico, serving the fiberglass insulation, glass packaging, highway safety bead, and flat glass markets. The company is also currently working toward expanding its presence in the air blast abrasives industry.

According to Strategic Materials, the company’s recycled glass product results in up to a 30 percent decrease in carbon emissions when used in the production of container glass and fiberglass insulation.

According to Mergers & Acquisitions, some of the company’s current customers include Owens Corning, Anchor Glass Container, Fevisa and Johns Manville.

Littlejohn & Co. specializes in private equity and debt investments, with over $4 billion currently under management.

Strategic Materials Acquisition

Principal at Littlejohn, Brian Michaud noted that Strategic Materials offered a unique customer value proposition with the opportunity for growth.

“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,” he said. “We are excited to partner with Denis Suggs and his team to support SMI’s growth objectives.”

Denis Suggs, President and CEO of Strategic Materials, noted that it's a new chapter for the 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,” he said. “Littlejohn’s investment is a strong endorsement for SMI and our employees, and will further advance the Strategic Materials Operating System, which is rooted in continuous improvement, strategic growth, and relentless execution.”

Mergers & Acquisitions noted that Moelis & Co. LLC and Houlihan Lokey Inc. are serving as financial advisers to Strategic Materials, with Kirkland & Ellis LLP as legal counsel. Gibson Dunn & Crutcher LLP is acting as legal counsel for Littlejohn.

The deal’s financial terms were not disclosed. 

   

Tagged categories: Acquisitions; Glass; Mergers; NA; North America; Program/Project Management

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