Compass Diversified Holdings (NYSE: CODI) is buying Clean Earth from Greenwich, Connecticut-based private equity firm Littlejohn & Co. LLC.
Clean Earth, headquartered in Hatboro, Pennsylvania, processes contaminated soil, dredge sediments, and hazardous and non-hazardous soil on the east coast. The company provides facilities-based treatment, disposal and re-use for the soil.
Compass, headquartered in Westport, Connecticut, manages a group of middle market businesses.
Littlejohn focuses on investing in middle-market companies that are facing challenges. The firm's recent investments include Hostway, an information technology company, and Newgistics, an e-commerce company.
The firm closed a $2 billion fund in July.
Houlihan Lokey is acting as Littlejohn's financial adviser, and Morrison Cohen is providing legal advice.