(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 Foundation Systems of Michigan (“FSM”) on July 9, 2020. FSM is the second acquisition completed by Groundworks since Cortec’s investment earlier this year. Terms of the transaction were not disclosed.
Headquartered in Livonia, MI, FSM is the leading provider of foundation repair, basement waterproofing, and crawl space repair services in Michigan. Founded in 2007 by Bob Genord, FSM operates three branch offices across the state with more than 200 employees. FSM serves primarily the single-family residential market with a suite of services including basement waterproofing, crawlspace encapsulation, foundation repair, gutter repair, and concrete lifting.
Virginia Beach, VA-based Groundworks is the nation’s leading vertically integrated foundation services company, with a footprint of 33 locations servicing 24 states under 15 locally operated brand names and employing more than 2,000 associates. FSM represents Groundworks’ sixteenth acquisition since its inception in 2016 and strengthens Groundworks’ existing presence in the Midwest while providing a platform for additional expansion in the region.
“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.” Mr. Malone added, “We are looking forward to strengthening our brands by sharing learnings between our teams, while providing FSM’s employees with additional opportunities for growth, development, and advancement.”
Mr. Genord, Founder and CEO of FSM stated: “We decided to partner with the Groundworks team because they share our values, in particular the commitment to delivering customers world-class service and superior solutions. We are very excited for this partnership with Groundworks and to take FSM to the next level through the vast resources that Groundworks can provide.”
David Schnadig, Co-President of Cortec, said “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.” Mr. Schnadig added, “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.”
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 FSM
Founded in 2007 and headquartered in Livonia, MI, FSM is a leading provider of foundation repair, basement waterproofing, and crawl space repair services throughout Michigan. FSM 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 FSM can be found at https://www.drymich.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.
