Private Equity Firms Acquire Advanced Recycling Systems

Jan 07, 2013, 09:31 ET from Wisdom Capital Partners

GREENWICH, Conn., Jan. 7, 2013 /PRNewswire/ -- Wisdom Capital Partners, LLC ("Wisdom") today announced that it had partnered with Stanwich Partners, LLC ("Stanwich") and Ironwood Capital to acquire privately-held Advanced Recycling Systems, Inc. ("ARS") of Lowellville, Ohio.  Founded in 1991, ARS is an industry leader in the design and manufacture of patented equipment utilized in the collection, recycling and removal of dust and debris generated in industrial environments.

ARS offers a proprietary line of products including steel grit recyclers and dust collectors for the bridge painting, municipal water tank, shipbuilding and industrial market segments. ARS' products offer a strong value proposition to contractors who benefit from substantial cost savings in the form of lower transportation and landfill fees and from enhanced quality and efficiencies in surface preparation. See the company's website at www.arsrecycling.com for further information.

"ARS is well positioned for future growth as an aging infrastructure in the U.S. continues to require significant investment and attention. There is also a growing need for environmentally-friendly industrial solutions. ARS is poised to benefit from both drivers of demand, and we are delighted by this acquisition," stated Dominic Petito, President & CEO of Wisdom.

Tom Herrmann, a Managing Director of Stanwich, will serve as interim CEO of ARS following the acquisition. Mr. Herrmann noted that, "We were attracted by ARS' reputation and the quality of its products, which are second to none in its industry.  We believe the company's prospects are excellent as ARS continues to gain share in its existing markets and enter new industrial markets where there is a need for recycling solutions."

Gus Lyras, a founder and shareholder of ARS, stated that, "The shareholders of ARS were pleased to enter into this transaction which, among other things, provides the company with the resources and expertise to take advantage of growth opportunities that we couldn't exploit on our own. We are all looking forward to taking the company to the next level and see a bright future ahead for ARS."

The company will continue to operate under the same name in its current facility in Lowellville and expects to retain all of its employees, including senior management, following the transaction.

Ironwood Capital provided financing for the transaction in the form of senior subordinated debt and equity. "We were pleased to partner with Wisdom and Stanwich to complete the ARS transaction and are excited about the prospects for ARS," stated Dickson Suit, partner at Ironwood Capital.

Comerica Bank provided senior debt financing for the transaction.

About Wisdom Capital Partners, LLC
Wisdom Capital Partners is a private investment firm focused on middle market companies with solid growth potential. It offers access to capital and strategic advice. It will invest in growth, buyout and distressed opportunities, using a range of debt and equity instruments with an emphasis on long-term ownership, partnership and capital appreciation for all stakeholders. For more information, go to www.wisdomcapitalpartners.com

About Stanwich Partners, LLC
Stanwich Partners, LLC is a private equity investment company specializing in the acquisition of established and profitable, small to middle-market manufacturing and value-added distribution companies. Stanwich frequently acquires stakes in companies with a long history of family ownership and corporate divestitures.  For more information, go to www.stanwichpartners.com

About Ironwood Capital
With  $550 million of capital under management, Ironwood Capital serves as a value-added partner for middle market transactions.  Ironwood invests in senior subordinated debt and equity securities in amounts ranging from $5 million to $25 million to support business owners and financial sponsors in leveraged buyouts, growth financings and recapitalizations. For more information, go to www.ironwoodcap.com

Media Contact:
Joe Allen
Allen & Caron
212-691-8087

SOURCE Wisdom Capital Partners



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