The Carlyle Group Agrees to Sell Liberty Tire Recycling To ECP

Rhea-AI Summary

The Carlyle Group (NASDAQ: CG) has agreed to sell Liberty Tire Recycling to ECP, a seasoned investor in environmental solutions. This transaction, anticipated to close in Q2 2021, is supported by Liberty's significant position in the North American tire recycling market, saving over 190 million tires annually. Liberty has transformed into a national leader under Carlyle's management since 2017, enhancing its capabilities in sustainable materials production. Financial specifics of the deal remain undisclosed.

Positive

• Liberty Tire Recycling is a prominent player in North America's tire recycling industry, recycling around 3 billion pounds of rubber annually.
• The transaction with ECP positions Liberty for continued growth and success in sustainability-driven markets.

Negative

• None.

NEW YORK and SUMMIT, N.J., April 1, 2021 /PRNewswire/ -- Global investment firm The Carlyle Group (NASDAQ: CG) announced today that it has agreed to sell Liberty Tire Recycling ("Liberty" or the "Company") to ECP, an investor with a decades-long reputation in the environmental and sustainable solutions sector. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2021.

Liberty is a premier provider of tire recycling services in North America. With a network of more than 25 processing plants and flexible collection service offerings nationwide, the Company saves more than 190 million tires per year from the waste stream, recycling approximately three billion pounds of rubber for innovative, sustainable materials and products.

Carlyle Strategic Partners IV, an investment fund managed by Carlyle, led a recapitalization transaction to become the Company's majority equity sponsor in December 2017.

Evan Middleton, co-head of North America for Carlyle Strategic Partners said, "Carlyle's investment thesis for Liberty centered 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. 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 said, "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."

Liberty Tire Recycling CEO Thomas Womble said, "Under Carlyle's leadership, Liberty transformed into a national company with strong assets, broad capabilities, and innovative products. We are excited to partner with ECP as we continue our growth trajectory and increase our capacity to recycle tires into a wide range of beneficial, eco-friendly products."

Financial details of the transaction were not disclosed.

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. 

About Liberty Tire Recycling
Liberty Tire Recycling is a premier provider of tire recycling services in North America. Liberty collects and recycles used tires for innovative, beneficial re-use. The recycled rubber produced by Liberty is used as crumb rubber and industrial feedstock for molded products; as tire-derived fuel for industrial kilns, mills and power plants; and as rubber mulch for landscaping and playgrounds. The company maintains a network of processing plants and comprehensive, nationwide collection services.

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Investment Solutions. With $246 billion of assets under management as of December 31, 2020, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs 1,825 people in 29 offices across five continents. Further information is available at www.carlyle.com. Follow The Carlyle Group on Twitter @OneCarlyle.

About ECP
ECP, founded in 2005, is a leading investor across energy transition and decarbonization infrastructure assets, including power generation, renewables and storage solutions, sustainability-linked infrastructure and customer solutions facilitating the energy transition. The ECP team, comprised of 52 people with 500 years of collective industry experience, deep expertise and extensive relationships, has consummated more than 60 transactions over the last 10 years, representing more than $45 billion of enterprise value.

Media contacts

Liberty Tire Recycling
Don Meyer
Donald.Meyer@gowestfourth.com 
202-834-6859

Carlyle
Christa Zipf
Christa.zipf@carlyle.com
347-621-8967

ECP
Jonathan Keehner / Julie Hamilton / Kara Brickman
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

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SOURCE The Carlyle Group; ECP

FAQ

What is the Carlyle Group's recent sale announcement regarding Liberty Tire Recycling?

The Carlyle Group announced its agreement to sell Liberty Tire Recycling to ECP, focusing on enhancing Liberty's growth in sustainable solutions.

When is the Carlyle Group's sale of Liberty Tire Recycling expected to close?

The sale is anticipated to close in the second quarter of 2021, subject to customary closing conditions.

What are the implications of Carlyle's sale of Liberty Tire Recycling for investors?

The sale may indicate a strategic shift for Carlyle as Liberty is positioned to strengthen its market presence under ECP's ownership in sustainability.

How many tires does Liberty Tire Recycling recycle annually?

Liberty Tire Recycling saves over 190 million tires from the waste stream each year, contributing significantly to sustainable material production.

What role does ECP play in the acquisition of Liberty Tire Recycling?

ECP is a leading investor in energy transition and sustainability, aiming to leverage Liberty's capabilities in providing sustainable materials.