Private equity firm Littlejohn & Co. is buying Strategic Materials Inc., an environmental and recycling services provider. The Strategic Materials acquisition follows the firm’s recent efforts of raising two CLO funds this year.

Strategic Materials operates a network of nearly 50 glass recycling facilities across the U.S., Canada and Mexico. The Houston-based company specializes in recovering and processing post-consumer and post-industrial glass. Strategic Materials, previously owned by Willis Stein & Partners and Vision Capital, is used to convert recyclable materials into a variety of products including: food and beverage containers, reflective materials and fiberglass insulation. Anchor Glass Container, Owens Corning, Fevisa and Johns Manville are among Strategic Materials’ list of customers. Financial terms of the deal were not disclosed.

“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,” states Littlejohn principal Brian Michaud.

Headquartered in Greenwich, Connecticut, Littlejohn backs middle-market businesses seeking a change in capital structure, strategy, operations or growth. The private investment firm, which has more than $5 billion in assets under management to date, launched its credit advisory division Wellfleet Credit Partners in 2015. In September, Wellfleet raised a collateralized loan obligation fund, called Wellfleet CLO 2017-2, with $557 million in capital commitments.

Other middle-market dealmakers interested in waste management providers include: Stella Environmental Holdings Inc.’s purchasing Rackleff Enterprises; and Bain Capital’s backing the acquisition of commercial recycling provider Living Earth.

Moelis & Co. LLC and Houlihan Lokey Inc. (NYSE: HLI) are acting as financial advisers to Strategic Materials, while Kirkland & Ellis LLP is serving as legal counsel. Gibson Dunn & Crutcher LLP is serving as legal counsel to Littlejohn.

Strategic Materials Inc.
Kamaron Leach

Kamaron Leach

Kamaron Leach joined SourceMedia in 2016, serving as Reporter of Mergers & Acquisitions. Kamaron writes the Finance Finesse column about investment banking and lending, and also covers the media and entertainment sector.