M&A: Sage Sustainable Electronics Acquires ITAD Service Provider Cascade Asset Management

Sage Sustainable Electronics, backed by private equity firm Closed Loop Partners has acquired Cascade Asset Management -- an IT asset disposition (ITAD) service provider. Financial terms of the deal were not disclosed.

This is Sage's second ITAD acquisition in recent months. The other deal involved buying Relectro, a provider of electronics repair, refurbishment, logistics, device lifecycle management, and ITAD services.

Related: See more ITAD acquisitions listed here.

ITAD M&A: Business Backgrounds

Cascade, founded in 1999, is based in Madison, Wisconsin. The company’s services include reuse, refurbishment, de-manufacturing, recycling and resale expertise. Key vertical market expertise spans healthcare, manufacturing and the technology sectors. Cascade has facilities in Wisconsin, Indiana and Florida.

Sage Sustainable Electronics, founded in 2014, is based in Columbus Ohio. Sage's mission is to serve the following (and in this order): "The planet, our customers, our colleagues, our communities, our suppliers, and our shareholders."

Sage offers reuse and recovery solutions to businesses seeking to sustainably dispose of their IT assets. On average, the company refurbishes or recycles nearly one million devices annually on behalf of customers. In 2022, Sage sent 58% of its total processed devices to a second life, mitigating approximately 300 million pounds of CO2e annually according to the EPA's Electronic Environmental Benefits Calculator, Sage said.

Sage co-founders Bob Houghton and Jill Vaské helped to "define best practices for the ITAD industry in security, asset management, and responsible recycling—including foundational support for the e-Stewards Certification program, the Microsoft Authorized Refurbisher program, and the Coalition for American Electronics Recycling," according to Sage.

Closed Loop Partners acquired a majority stake in Sage in 2023.

Sage Sustainable Electronics Buys Cascade: Executive Perspectives

In a prepared statement about the deal, Sage Sustainable Electronics CEO Bob Houghton said: “Cascade is among the most respected IT Asset Disposition companies in the industry, bringing over two decades of experience and a comprehensive suite of electronics recovery solutions that complement Sage’s growing platform. This marks an important milestone for Sage, as we accelerate progress toward increased market reach and scaled impact. We are thrilled to join forces with Cascade, an experienced operator in the industry, expanding our platform to keep more electronics in circulation across industries.”

Added Neil Peters-Michaud, founder & CEO of Cascade: “We are proud to join forces with Sage Sustainable Electronics, growing their platform as one of the largest pure IT Asset Disposition service providers in the U.S.. Our aligned mission, complementary services and geographic footprint accelerate shared goals to transform the ITAD industry and meet growing demand for electronics recovery across industries. Together, we can reach more markets, laying the groundwork for greater impact.”

Concluded Jackson Pei, managing director and co-head of Closed Loop Partners’ buyout private equity group: “Closed Loop Partners is proud to back Sage Sustainable Electronics’ acquisition of Cascade Asset Management. Cascade’s experience and reach strengthens Sage’s position as a leading IT Asset Disposition provider, with extensive capabilities to serve diverse locations and industries––from healthcare, to technology, to manufacturing,” said Jackson Pei, Managing Director and Co-head of Closed Loop Partners’ buyout private equity group. “We look forward to supporting Sage’s continued expansion to bring more electronics back in circulation, keeping them within domestic supply chains and out of landfills.”

IT Asset Disposition (ITAD) M&A And Market Growth Forecast

Meanwhile, M&A activity in the ITAD market remains strong. Among the reasons: Annual spending on ITAD is expected to reach $34 billion by 2030, up from $16.8 billion in 2022, according to Research and Markets. That's a 9.2% compound annual growth rate (CAGR), the researcher said.

Also, key investors in the e-waste market include the Microsoft Climate Innovation Fund -- which backs Circular Services, a startup that's building and expanding recycling infrastructure across the United States.

Among the key business drivers for ITAD spending: The growing desire to reduce e-waste -- thereby keeping PCs, laptops, smartphones, printers, networking equipment and consumer electronics out of landfills.