Sterling Group LP on Tuesday, June 23, said it’s agreed to sell Tangent Technologies LLC, a manufacturer of materials for recycled plastic lumber, to Platinum Equity LLC.

Neither Sterling nor Platinum in a separate statement disclosed the financial terms of the transaction.

The Deal reported in April that Sterling was working with Moelis & Co. LLC on a sale process for the Aurora, Ill.-based company, with Lincoln International LLC also advising. It generates Ebitda in the ballpark of $60 million, The Deal reported, with sources adding a high single-digit Ebitda valuation was likely.

Sterling said its ownership enabled Tangent to expand its reach to serve new customers and new end markets, more than tripling in size.

Platinum said it plans to help Tangent expand its core offerings and will support its next phase of growth through investment and strategic add-on acquisitions.

Tangent Technologies, which Sterling acquired in 2018 for undisclosed terms, services the fencing, industrial, original equipment manufacturing, agricultural and animal/equine sectors. The company’s sustainable plastic materials are used in marine decking, structural applications and various site amenities, such as park and playground equipment.

Beverly Hills, Calif.-based Platinum is an investment firm with a portfolio of about 60 operating companies. It specializes in mergers, acquisitions and operations across sectors including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology and telecommunications. Platinum targets buyouts with enterprise values from $500 million to more than $5 billion.

In 2024, it raised $12.4 billion for its flagship Platinum Equity Capital Partners VI. In September, the PE firm closed Platinum Equity Small Cap Fund II LP, exceeding its target of $1.75 billion with $2.28 billion in commitments.

Houston-based Sterling targets basic manufacturing, distribution and industrial services companies with enterprise values between $100 million and $1 billion and has financed more than 77 platform companies. Its fund portfolio companies include Premier Tire and Service, Compost360, Russell Landscape Group Inc., OGD Overhead Garage Door and AGS American Glass Services.

It raised a $3.5 billion sixth fund in 2024.

Sterling and Platinum expect the transaction to close in the third quarter of 2026, subject to customary closing conditions.

Gibson, Dunn & Crutcher LLP and Alston & Bird LLP provided counsel to Platinum. Co-president Jacob Kotzubei and managing director Nathan Eldridge worked on the deal in-house.

Tangent tapped Moelis and Lincoln for financial advice. McDermott Will & Schulte LLP provided counsel. CEO Kevin Pothoff worked on the deal internally along with Sterling partner John Griffin.