Cortec Group has acquired Groome, a provider of specialty transportation services, operating in both the airport shuttle and closed-loop campus shuttle markets.
Groome’s airport shuttle segment offers medium- to long-haul scheduled van service between major airports and distant regional markets; and its contract segment provides contracted closed-loop campus shuttle services to academic and institutional clients.
The Groome family, which has owned the company for three generations (it was founded in 1934), will remain significant investors and Vince Groome will continue to lead the business as CEO. The company has operations in 12 states and is headquartered in Richmond, VA (www.groometransportation.com).
“From our first meeting, it was evident that Cortec was different than the other private equity firms that pursued us,” said Mr. Groome. “They did a lot of work up front, so they were knowledgeable of our business. At the same time, they were curious to learn more and really respectful of what my family, my management team and I have built. Even better, their track record of successfully building family-owned businesses was unmatched. Hands down they were easily our top choice.”
Cortec invests in companies with revenues of $40 million to $300 million and EBITDA of $7 million to $35 million. Sectors of interest include healthcare products and services, business and consumer products, value-added distribution and specialty services. The firm was founded in 1984 and is based in New York (www.cortecgroup.com).
“Groome was a very attractive investment opportunity for Cortec for several key reasons: First, the Groome family has built a well-respected brand recognized for consistent excellence across its markets and service offerings. Second, the management team, and most importantly CEO Vince Groome, viewed Cortec’s business acumen and successful history partnering with entrepreneurs to continue growing their companies as favorable differentiators, and third, management and Cortec had a shared vision of Groome’s future,” said David Schnadig, a Managing Partner at Cortec.
Groome is now the fourth platform investment of Cortec Group Fund VI, which closed in May 2015 with $1.1 billion in capital commitments.
“We look forward to supporting Vince Groome and the management team in their efforts to continue driving future growth through new market expansion via greenfield facilities and acquisition, and securing new long-term contracts with leading universities and healthcare campuses,” added Jonathan Stein, a Cortec Partner.
Senior debt for this acquisition was provided by TwinBrook Capital Partners, Capital One Sponsor Finance, and NewStar Financial.
Harris Williams & Co. was the financial advisor to Groome.
© 2018 Private Equity Professional | January 22, 2018
