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Littlejohn Announces Acquisition of Strategic Materials, Inc.

10/17/2017

Greenwich, CT – October 17, 2017 –  Littlejohn & Co., LLC (“Littlejohn”), a private investment firm based in Greenwich, CT, today announced that it has signed a definitive agreement to acquire Strategic Materials, Inc., a leading environmental services company and the largest glass recycler in North America, from Willis Stein & Partners and Vision Capital. Financial terms of the transaction were not disclosed.

Headquartered in Houston, TX with a heritage that dates back more than 100 years, Strategic Materials is the industry leader in recovering and processing 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 large and stable 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.  The company’s recycled glass product, or cullet, results in energy savings and a reduction in carbon emissions by up to thirty percent when utilized in container glass and fiberglass insulation production.

Brian Michaud, a Principal at Littlejohn, said: “Strategic Materials is a market leader with a unique customer value proposition and several actionable growth opportunities.  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.”

Denis Suggs, President and CEO of Strategic Materials, added: “This is an exciting new chapter for our 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.  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.

About Littlejohn & Co., LLC

Littlejohn & Co. is a Greenwich, Connecticut-based investment firm focused on private equity and debt investments primarily in middle market companies. With over $4 billion under management, the Firm seeks to create long-term value for its investors and build sustainable success for its portfolio companies through a disciplined approach to engineering change. For more information about Littlejohn, visit http://www.littlejohnllc.com.

About Strategic Materials, Inc.

With over a 100 year history, Strategic Materials is North America’s largest and most comprehensive glass recycler, with nearly 50 locations in the United States and Canada.  The company focus has been and continues to be on creating value for customers through innovation and continuous improvement.  The company is a technology partner to cleaner, more efficient glass production, providing customers and suppliers with economical and environmentally viable solutions for reuse of waste streams including glass and plastic.  For more information visit www.strategicmaterials.com.