November 5, 2008
American Securities Completes Acquisition of Liberty Tire
American Securities, a New York-based middle-market private equity firm, today announces that it, in partnership with management, has completed the acquisition of Liberty Tire Services, LLC, a Pittsburgh, Pennsylvania-based tire recycler. This investment is made from a rollover of existing management interests and from American Securities Partners IV LP, a $1 billion fund that American Securities closed in December 2004. This is the final platform investment made from ASP IV. In September, American Securities closed American Securities Partners V, L.P., with more than $2.3 billion of committed capital, and is now actively seeking equity investments for this partnership.
Liberty Tire collects used tires and recycles them into value-added products. It recycles nearly 25% of America’s annual scrap tire production through a network of 14 facilities located in Florida, Georgia, Illinois, Indiana, North Carolina, South Carolina, Ohio, Pennsylvania and Texas. Liberty Tire processes scrap tires into a wide range of beneficial products in four areas: (1) finely ground crumb rubber produced directly or indirectly for use in artificial turf installations, molded rubber goods such as floor mats and paving tiles, new passenger tires, truck tire retread compounds, hoses, brake linings, coatings, sealants and rubberized asphalt; (2) wire-free rubber nuggets used in playground safety surfacing and decorative landscaping mulch; (3) tire-derived fuel that is a high-BTU, clean-burning alternative to coal and natural gas for utilities and industry; and (4) light-weight aggregate for use in road construction and drain field applications.
Jeff Kendall, Liberty Tire’s Chief Executive Officer said, “We look forward to the next stage of Liberty Tire’s development and to working with American Securities. We expect to continue to grow and improve all aspects of our operations and are pleased to have the support of a partner with the resources of American Securities.
Matt LeBaron, a managing director of American Securities, commented, “Liberty Tire has become the country’s largest tire recycler by providing its customers with outstanding service and quality products. We are delighted to partner with the management team and look forward to supporting the company’s continued growth over the long term. Liberty Tire perfectly fits our investment philosophy of investing in leading companies in stable-demand industries.
