(New York, NY) – Cortec Group (“Cortec”), a New York-based private equity firm that focuses on investing in and growing entrepreneur-led and family-owned middle market specialty consumer, business-to-business, distribution and healthcare services and products companies, announced that Groundworks, LLC (“Groundworks”), in which Cortec Group Fund VII, L.P. (“Cortec Fund VII”) made a significant growth capital investment on January 17, 2020, acquired AFS Foundation and Waterproofing Specialists (“AFS”) on June 4, 2020. Terms of the transaction were not disclosed.
Headquartered in Huntsville, AL, AFS is a leading provider of foundation repair and related services in the Southeast U.S. Founded in 2000 by Ben Bayless, Jr., AFS has leading market positions in Alabama and Tennessee and also services parts of Georgia and Mississippi. Operating across seven branch offices in the region with more than 300 employees, AFS serves the single-family residential market with a suite of services similar to Groundworks’, including foundation repair, crawlspace encapsulation, basement waterproofing and concrete lifting.
Virginia Beach, VA-based Groundworks is the nation’s leading vertically integrated foundation services company, with a footprint of 30 locations servicing 23 states under 14 locally operated brand names and employing more than 1,800 associates. AFS represents Groundworks’ fifteenth acquisition since its inception in 2016 and strengthens Groundworks’ existing presence in the Southeast while providing a platform for additional expansion in the region.
“The AFS acquisition is transformational for Groundworks and the foundation services industry,” said Matt Malone, CEO of Groundworks. “AFS is a market-leading and rapidly expanding company with a geographic presence that is highly strategic and complementary to Groundworks’ existing brands in North Carolina, South Carolina, and Florida. Under Ben Bayless’ leadership, AFS has developed a culture of performance excellence which is consistent with Groundworks’ approach to delivering world-class customer service and solutions, while providing expansive professional growth and development opportunities for employees.” Mr. Malone added, “We have achieved another important milestone toward our long-term growth objectives through this acquisition and are thrilled that AFS is now part of the Groundworks platform.”
Mr. Bayless, Founder and CEO of AFS, stated: “AFS and Groundworks share a strong sense of respect for our customers and employees. Joining Groundworks enables us to continue our rapid expansion, provide our team with new opportunities for professional development and continue doing business with the same values and culture we have embraced for two decades. This is an ideal partnership and we are excited for AFS to become even stronger as part of Groundworks.”
David Schnadig, Co-President of Cortec, said “Matt and the entire Groundworks team have been tireless in their efforts to continue driving the company’s growth during the incredibly challenging COVID-19 pandemic. Simultaneously, Matt, Ben and the senior leadership teams of both Groundworks and AFS worked collaboratively to make this transaction happen.” Mr. Schnadig concluded, “We are incredibly excited to be a part of the growing Groundworks family of companies and to team with Groundworks senior leaders to continue building the company.”
About Groundworks
Groundworks is the nation’s largest privately held foundation services company and is comprised of leading local brands, including AFS Foundation and Waterproofing Specialists®, Complete Basement Systems®, Florida Foundation Authority™, Foundation Recovery Systems™, Foundation Repair of Western Colorado®, Foundation Systems of Michigan®, Indiana Foundation Service™, Innovative Basement Authority™, JES Foundation Repair™, Mount Valley Foundation Services®, Ohio Basement Authority™, Ohio Basement Systems™, Tar Heel Basement Systems®, A-1 Sewer & Drain™, Independence Materials Group™, and Bizwiz Software™. Groundworks has been named to the Inc. 5000 Fastest Growing Companies and Best Places to Work numerous times. More information about Groundworks can be found at www.groundworks.com.
About AFS
Founded in 2000 and headquartered in Huntsville, AL, AFS is a leading provider of foundation repair and related services in the Southeast U.S. AFS services the single-family residential market across multiple locations in its region, providing a critical suite of services to homeowners which preserve home value, integrity and safety. More information about AFS can be found at https://www.afsrepair.com/.
About Cortec
Founded in 1984, Cortec invests in market-leading, middle-market specialty consumer, distribution, healthcare and specialty services and products businesses in partnership with entrepreneurs, families and management teams who want to work with Cortec to drive growth and improve business fundamentals. More information about Cortec can be found at www.cortecgroup.com.
