ECP acquiring Liberty Tire Recycling

The largest player in the USA’S tyre recycling sector will soon have a new owner. Global investment firm The Carlyle Group has agreed to sell Liberty Tire Recycling to ECP, a 2005-founded investor across energy transition and decarbonisation infrastructure assets. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2021. The parties have not disclosed financial details.

Liberty Tire Recycling is a premier provider of tyre recycling services in North America. With a network of more than 25 processing plants and flexible collection service offerings nationwide, Liberty saves more than 190 million tyres per year – more than a third of the scrap tyres arising each year in the USA – from the waste stream, recycling approximately 1.3 million tonnes of rubber for innovative, sustainable materials and products.

Carlyle Strategic Partners IV, an investment fund managed by Carlyle, led a recapitalisation transaction to become Liberty’s majority equity sponsor in December 2017.

Creating value in an exciting market

“Carlyle’s investment thesis for Liberty centred on the company’s attractive growth characteristics and the ability to create a national provider operating at the nexus of beneficial reuse and sustainable materials production,” comments Evan Middleton, co-head of North America for Carlyle Strategic Partners. “We are confident that Liberty will continue to create value in an exciting market under the ownership of ECP.”

Tyler Reeder, managing partner of ECP adds: “Liberty occupies a key position in the recycling industry and is part of a vital sustainability supply chain in North America. As consumers and manufacturers commit to greener and more sustainable products and practices, Liberty’s ability to provide sustainable materials and solutions for a growing number of applications will only make the Company a stronger and more sought-after partner.”

“Under Carlyle’s leadership, Liberty transformed into a national company with strong assets, broad capabilities, and innovative products,” says Thomas Womble, chief executive officer of Liberty Tire Recycling. “We are excited to partner with ECP as we continue our growth trajectory and increase our capacity to recycle tyres into a wide range of beneficial, eco-friendly products.”

Houlihan Lokey is serving as the lead financial advisor, BMO Capital Markets is serving as co-financial advisor and Latham & Watkins is serving as legal advisor to Liberty Tire Recycling. Kirkland & Ellis LLP is serving as legal advisor to ECP.