New York Buyout Shop In Talks For Tire Recycler

American Securities, a New York-based middle-market buyout firm, appears close to buying Liberty Tire Services LLC, a Pittsburgh, Pa.-based tire recycler, from Park Avenue Equity Partners and other investors.

Liberty Tire Services collects, processes and disposes of tires for retail tire dealers and government agencies in 16 states. It also sells shredded tire chips for fuel, civil engineering, and ground rubber applications such as artificial turf and floor mats. Its products are also used in hoses, safe playground surfaces and as decorative landscape mulch. An official with knowledge of the deal said Oct. 22 that the parties expect the transaction to close in the next seven to 20 days.

Park Avenue Equity Partners, based in New York, purchased Liberty Tire Services in September 2004 for an undisclosed amount. Executives at Park Avenue Equity Partners and Liberty Tire Services did not return calls, and officials at American Securities declined comment.

According to a regulatory filing, American Securities plans to make the investment from American Securities Partners IV LP, a $1 billion fund it closed in December 2004. In September, the shop closed its fifth fund—which has a 25-year investment period —at $2.3 billion. American Securities invests on the behalf of wealthy individuals, including the family of Sears Roebuck & Co. heir William Rosenwald, as well as endowments and institutional investors.

Park Avenue Equity Partners is currently investing from its $100 million second fund. It has invested around $340 million since its founding in 1999, $50 million of which came from the general partners. The firm has completed 10 platform deals and more than 50 add-ons, according to its Web site.