Cortec’s Groundworks Closes Add-On

Groundworks, a portfolio company of Cortec Group, has acquired Foundation Systems of Michigan. This is the second add-on acquisition completed by Groundworks since Cortec acquired the company through its seventh fund in January 2020.

Foundation Systems of Michigan (FSM) is a provider of basement waterproofing, crawlspace encapsulation, foundation repair, gutter repair, and concrete lifting to the single-family residential market in Michigan. The company, with more than 200 employees, was founded in 2007 by Bob Genord and is headquartered near Detroit in Livonia, Michigan.

Groundworks is a provider of single-family residential foundation services including repair, basement waterproofing, crawl space repair and encapsulation, and concrete lifting. The Virginia Beach, Virginia-based company operates under 15 brand names through 33 locations in 24 states – primarily in the Mid-Atlantic, Southeast, Midwest, and Mountain West regions of the US.

“We are thrilled for FSM to join the Groundworks platform,” said Matt Malone, CEO of Groundworks.  “FSM is one of the preeminent foundation services providers in the Midwest with a geographic presence that is highly strategic and complementary to Groundworks’ existing branches in Ohio, Indiana and Minnesota.  Bob has built an exceptionally skilled and talented team of home services professionals and a reputation of performance excellence throughout Michigan.”

The buy of FSM is Groundworks’ sixteenth acquisition since its founding in 2016 and strengthens its presence in the Midwest and provides a platform for additional expansion in the region. Last month, Groundworks closed the buy of Alabama-based AFS Foundation & Waterproofing Specialists. This acquisition added 300 employees, more than $65 million in annual revenue, and seven offices in Alabama, Tennessee, Georgia and Mississippi.

“We are incredibly excited to be adding another highly-respected brand to the growing Groundworks platform and to continue supporting Groundworks’ senior leaders in building the company,” said David Schnadig, co-president of Cortec. “Matt and the entire Groundworks team have continued to deliver impressive growth during very challenging times.  Further, to be able to complete the FSM acquisition on the heels of last month’s combination with AFS is a testament not only to the team’s tenacity but also to the future opportunities foundation services industry leaders see in being part of the Groundworks family of brands.”

Cortec invests in US and Canadian 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 headquartered in New York City.

Private Equity Professional | July 15, 2020

Print Friendly, PDF & Email