PE-Backed Tire Recycler Adds On

Liberty Tire Services LLC, a Pittsburgh-based tire recycler owned by American Securities, has acquired Able Tire Co., which operates in Texas and Oklahoma. No financial terms were disclosed.

PRESS RELEASE
The nation’s leading tire recycling company, Liberty Tire, purchased Texas-based Able Tire Company, and The March Group represented the seller. Liberty and Able Tire’s merger represents a partnering in the Texas and Oklahoma scrap tire market. The estimated number of waste tires produced in America annually is one per person, making the task of recycling or disposing of scrap tires a significant business. The industry is under strict state regulations; however, both Liberty Tire and Able Tire have established methods for turning old tires into new profits as well as innovative materials. For over 16 years, seller Able Tire has worked with major tire retailers to dispatch, collect and track the disposal of scrap tires. Major new tire retailers have relied on Able Tire to handle an estimated 15 million tires generated annually through disposal or reuse.

Seeing the opportunity to reclaim this valuable material, Able Tire has handled its scrap tires in one of three ways: resold them or used them as fuel or fill. Often, the condition of the scrap tire collected determines the method of recycling. Resale has become the preferred re-use method in the industry. The resale value of used tires for vehicles is determined by its tread. However, cement kilns also rely on the clean-burning properties and concentrated energy of scrap tires to replace coal, and tires-as-fuel actually improves the exhaust air quality from the kilns. The third method, as approved by Texas environmental regulators, is to fill land with buried tires and dirt to restore property for new uses and developments.

The March Group worked with Able Tire owner Gary Humphreys to consummate this synergistic sale. With the acquisition, Liberty Tire will take advantage of significant savings and efficiencies while retaining the company’s leadership team. Through the company’s leadership, expertise and innovation, Able Tire established a paperless manifest system, a cradle-to-grave tire tracking system that includes the filing of paperless records with the Texas State environmental authorities.

Able’s operations are very efficient and neat as a pin. Able’s management team continues on with Liberty Tire as a resource to spearhead additional initiatives and acquisitions; both parties see great opportunities for the prospect of future earnings based on this partnership.

With this acquisition, Liberty continues to lead the industry as the largest scrap tire collector and recycler in the United States.

Liberty is the premier company in the tire recycling industry, helping customers meet their environmental goals by collecting and recycling nearly 25 percent of America’s annual scrap tire production through a network of fourteen facilities. Liberty processes scrap tires into a wide range of beneficial products including:

* Finely ground crumb rubber produced directly or indirectly for use in the following: artificial turf installations, molded rubber goods such as floor mats, paving tiles, new passenger tires, truck tire retread compounds, hoses, brake linings, coatings, sealants, and rubberized asphalt.

* Colored, wire-free rubber nuggets used in playground safety surfacing and decorative landscaping mulch.

* Tire-Derived Fuel – A high-BTU, clean-burning alternative to oil and natural gas for utilities and industry.

* Light weight aggregate for use in road construction and drain field applications.

The March Group is headquartered in South Florida with offices strategically located throughout the world. Today the company employs more than 200 professionals who, as a team, have decades of experience in the valuation and sale of privately held companies. Investors and entrepreneurs interested in buying or selling a business can tap into The March Group’s 20-plus years of transaction experience.

The March Group Kelli Matonak, Corporate Marketing Director, 954-282-3336 kmatonak@marchgroup.com www.marchgroup.comwww.corporations4sale.com