A Columbus company that emphasizes repair and reuse over recycling of old corporate electronic devices plans to expand under new majority ownership.
Sage Sustainable Electronics LLC raised a “substantial multimillion-dollar investment” from the private equity arm of Closed Loop Partners, co-founder and CEO Bob Houghton said.
"The thing about this partnership I think is most compelling is Closed Loop and Sage define success the same way," Houghton said.
Closed Loop, a New York City investment firm that also operates a recycler, aims to speed the transition to a "circular economy" – emphasizing new life for materials over extracting more fossil fuels and minerals from the earth.
“When we look at Sage’s work to advance the waste-free future for electronics, that’s very much aligned with our mission,” said Karine Khatcherian, co-leader of the Closed Loop Leadership Fund.
“When we met the Sage team, we were really impressed by the company’s leadership,” she said. “We see this investment as key to achieving our overall goals.”
Exact terms of the deal are not disclosed, nor is the size of Closed Loop's stake. No one was bought out: Houghton, co-founder Jill Vaské and initial investor Hugo Neu Corp., the NYC-based recycling pioneer, retain minority positions.
Formed last year, the private equity fund manages assets of more than $200 million, Khatcherian said. Limited partners include corporations, institutions and family funds, according to Closed Loop's website.
Sage has more than 320 employees, about 220 of them at two Columbus facilities and 100 in Reno, Nevada.
Since its founding in 2014, the company has doubled revenue every two to 2 1/2 years, Houghton said. The dollar amount is not disclosed.
The funding will fuel hiring, including more than 20 new jobs in Columbus, and additional U.S. facilities closer to customers for shorter shipping routes. Sage also will develop a reporting platform for clear presentations of environmental impact for customers to include in their own corporate sustainability reporting.
"Growth for its own sake is not something we're chasing," Houghton said. "To the extent we can enlarge the volume of electronics we process, that gives us the ability to achieve our mission more fully."
Closed Loop also provides operational expertise and a network of large corporations it works with. The firm's projects have included developing more sustainable cups for Starbucks or alternatives to plastic bags for grocery chains.
The firm researched main players in IT Asset Disposition, known as ITAD, Khatcherian said. Not only was Sage is in the top quarter of firms in a fragmented industry, it had the right leaders and aligned with Closed Loop’s mission to promote both sustainability and equity.
"Together we feel we’re well=positioned to work toward the shared goal of keeping more electronics in circulation," Khatcherian said.
About 80% of the energy use for a given device is expended during its manufacturing, Houghton said, so the only way to truly mitigate its carbon footprint is to keep it operational longer.
“A big area of focus is reuse of these items and extending the reach of these items to people who cannot afford it today," Khatcherian said.
Sage will process some 1 million items this year, Houghton said in the interview. Last year, it was able to repair 58% of the items for clients to take back, sell or donate, according to a release.
Last year, a healthcare company on the West Coast made $3 million from Sage refurbishing and reselling printers, scanners and other devices – and avoided releasing 8 million kilograms of greenhouse gases, Houghton said this summer at a meeting of Central Ohio IT leaders joining a sustainability coalition. A Midwest bank with more laptops in its mix made $2.6 million on resale, donated some to a digital equity program, and avoided 13 million kilograms of greenhouse gases.
In a recent employee survey, Houghton said in the interview, four of five said they feel they are helping make the world a better place.
Houghton and Vaské co-founded e-recycler Redemtech Inc. in 1998 and left when it was sold in 2012. Vaské left as Sage president two years ago, keeping her ownership.
The company's roots in Columbus remain strong, Houghton said, and he doesn't expect to follow the usual pattern of a founder departing within a year or so of acquisition.
"I’ve never done more exciting work than what we’re doing right now," he said. "I want to continue with Sage to see it realize its full potential."
