SAN FRANCISCO, CA. – Meriturn Partners announced today the sale of Sustainable Solutions, Inc. (SSI) based in Wagoner, OK to Strateline Industries, LLC (Strateline) based in Rogers, AR. Meriturn invested in the company in November of 2006 as part of a management buyout and reorganization of the company. Strateline was a strategic partner of SSI’s and desired to vertically integrate by adding the capability to regenerate fibers from textile waste and to expand its sustainable offerings beyond non-woven products.

The transaction will be structured as an asset purchase with unsecured liabilities assumed by Strateline and SSI’s secured lender, Arvest Bank, repaid as part of the closing. The equity holders will benefit from the proceeds of the sale as well as from future royalty stream to take advantage of the synergies between SSI and Strateline.

Meriturn’s Partner and Chairman of SSI, Lee Hansen commented: “The transaction provides considerable synergies for both Strateline and SSI and the board felt all parties would benefit from the immediate combination but also from the future prospects. As such, we structured the transaction so the parties could take part in the combined upside”.

The transaction is scheduled to close by the middle of April.


About Meriturn Partners

Meriturn Partners, LLC manages the Meriturn Fund, which invests in corporate recapitalizations, restructurings and turnarounds where its capital, financial restructuring, and operational initiatives can improve the profitability and growth of businesses. Meriturn targets investments in companies operating in basic industries (manufacturing, services, distribution, etc.) with $50-$250 million of revenue and based in the U.S. and Canada. Meriturn was founded in 2001 and has offices in San Francisco, CA and Raleigh, NC. For more information, visit www.meriturn.com.

Contact:
Lee C. Hansen
Meriturn Partners, LLC
415-595-5000
lee@meriturn.com