July 21, 2022

Heartwood Partners Invests in The Amlon Group to Support Growth

Heartwood Partners LLC is pleased to announce a growth investment in The Amlon Group (“Company”) on December 10, 2021 in partnership with the founders and management who will continue to lead the Company.

Headquartered in Plano, Texas, The Amlon Group is an environmental services company focused on recycling, processing, treatment, and management of metal and non-metal bearing industrial and hazardous waste streams. Its environmentally beneficial solutions protect finite resources by remediating waste and recycling valuable commodities. With increasing landfill-related liability and constraints as well as growing federal and state regulations, companies today must look for sustainable alternatives when managing their waste. The Amlon Group is comprised of two closely integrated operating segments that play to this macro trend: Amlon Resources Group, LLC (“ARG”) and Alpha Omega Recycling, Inc. (“AORI”). ARG primarily acts as a waste management services and logistics company in metal recycling and reclamation, whereas AORI is ARG’s in-house waste processor. Acquired by ARG in 2017 to vertically integrate processing capabilities, AORI is RCRA (Resource Conservation and Recovery Act) Part B permitted facility recycling metal-bearing industrial manufacturing by-products through thermal desorption among a variety of other technical processing and recycling capabilities.  Please visit ARG’s website at www.amlonresources.com to learn more about its recycling and waste management solutions or AORI’s website at www.alphaomegarecycling.com to learn more about its in-house waste processing abilities.

Mr. Lee Lasher, The Amlon Group’s Chief Executive Officer, stated, “Heartwood’s growth investment in The Amlon Group significantly enhances our future prospects. We are benefiting from Heartwood’s Value Creation Specialist team and strong track record in growing niche, leading businesses as we seek to further build upon our leadership position and 30+ years of experience in processing and recycling of hazardous materials.”

Mr. Mark Wayne, The Amlon Group’s President, stated, “We are thrilled to complete this partnership with the experienced environmental services investors at Heartwood Partners and remain excited about the future. More great opportunities are on the horizon for The Amlon Group.”

Heartwood Partners is focused on investing in partnership with family and management-owners. Its approach includes robust capital structures for investment companies and providing strategic, operational, human capital development, and marketing and e-commerce expertise, to support long-term growth, including organic and acquisition-driven expansion into new products and services. Please visit the Heartwood Partners website at www.heartwoodpartners.com to review our approach and investment portfolio.

“We are delighted to partner with The Amlon Group’s team. The Company’s stellar environmental and safety track record has enabled the Company to build a premier reputation in the specialty waste industry. The Amlon Group has developed an exceptionally strong foundation over its 30+ year history through deep environmental industry expertise, high-quality service, and strong waste processing capabilities,” said Mr. Demetrios Dounis, Managing Director of Heartwood Partners. He further added, “We proactively sought out The Amlon Group. They are a perfect fit with our focus and experience investing in the environmental services and recycling sectors as well as our approach towards growth through investment in people, processes, and add-on acquisitions. We intend to drive future growth by leveraging the Company’s market leadership and scalable infrastructure. We also plan to expand into new markets organically and through strategic add-on acquisitions.”

Heartwood Partners Private Equity Income Fund III, LP, is a $600 million committed fund.

Alarian Associates Inc. served as the financial advisor to Heartwood Partners.


Please contact the following members of the investment team at Heartwood Partners with investment or add-on opportunities:

Demetrios Dounis, Managing Director

DDounis@heartwoodpartners.com

Edwin Tan, Managing Director

ETan@heartwoodpartners.com

John Willert, Managing Director

JWillert@heartwoodpartners.com

Anshul Chawla, Principal

AChawla@heartwoodpartners.com

John Newman, Principal

JNewman@heartwoodpartners.com

James Jang, Vice President

JJang@heartwoodpartners.com

Brian Chung, Senior Associate

BChung@heartwoodpartners.com

About Heartwood Partners

Heartwood Partners has been dedicated to investing in private companies for over 37 years, developing a well-established track record of supporting management teams to build and grow their companies, both organically and by add-on acquisition. You can learn more about Heartwood Partners at www.heartwoodpartners.com. We are currently investing from a $600 million committed fund, Heartwood Partners Private Equity Income Fund III, LP. In addition, we have access to additional equity capital through co-investment from our limited partners. Our approach is designed for a longer-term investment horizon (our average investment period has been 5-7 years) and to capitalize portfolio businesses conservatively using significantly more equity and less debt than is typical in private equity investments. We do this to strengthen portfolio company balance sheets, create significant operating and bank covenant flexibility and perpetuate a business’ ability to pay a cash yield out of excess cash flow to shareholders and management.