(New York, NY) – Cortec Group (“Cortec”), a New York-based private equity firm that focuses on investing in business-to-consumer and business-to-business products and services companies in consumer, healthcare, and other attractive end markets, is pleased to announce that Groundworks, LLC (“Groundworks” or the “Company”), in which Cortec Group Fund VII, L.P. made a significant growth capital investment on January 17, 2020, received a significant investment from funds managed by KKR as part of a new strategic partnership. Cortec will remain an important shareholder in the Company and member of its board of directors. Terms of the transaction were not disclosed.
Founded in 2016, Groundworks has more than 4,000 employees operating in 33 states providing residential foundation and water management solutions, including foundation repair, basement waterproofing, crawl space repair and encapsulation, plumbing, gutter installation, and concrete lifting services. Additional information about Groundworks is available at www.groundworks.com.
Since Cortec partnered with Groundworks in January 2020, the Company has grown significantly, both organically and through acquisitions, and built a scaled, geographically diverse platform of local leaders operating under the Groundworks brand umbrella. Dave Schnadig, Cortec’s Co-President, stated, “Cortec is extremely excited about Groundworks’ new strategic partnership with KKR, through which we will collectively continue what Matt and the team began building in 2016. Not only will Groundworks further its leadership at its existing branches, the Company is also exceptionally well positioned to enter new markets and broaden its service offering, both organically and via acquisition.” Bill Tucker, a Managing Partner at Cortec, added, “We are thrilled with the results of our growth investment in Groundworks and are enthusiastic to continue supporting the Company alongside KKR during its next phase of growth.”
“In 2016, Groundworks embarked on a bold vision of building the nation’s leading foundation repair and water management services company by investing in and rewarding our incredibly talented tradesmen and tradeswomen. KKR is the ideal strategic partner as we enter the next chapter of evolving this industry given their experience and strong track record in supporting growth-oriented companies, extensive global resources, and our shared culture and values,” said Matt Malone, Founder & CEO of Groundworks. Matt added, “Cortec has been an outstanding teammate for Groundworks and our management team. Their commitment to our long-term success and significant investments in our business enabled us to build a strong platform unusually well positioned for success.”
Groundworks was advised by Harris Williams LLC, with Paul Hastings LLP serving as legal counsel.
About Groundworks
Groundworks®, headquartered in Virginia Beach, Va., is the nation’s leading and fastest-growing foundation and water management solutions company. Groundworks Companies provide residential foundation and water management solutions, including foundation repair, basement waterproofing, crawl space repair and encapsulation, plumbing, gutter installation, and concrete lifting services. Groundworks’ combined brands have helped over one million homeowners protect and repair their most valuable asset, their home. Groundworks operates over 50 offices and has been named for six years in a row to the Inc. 5000 Fastest Growing Companies, Qualified Remodeler Top 500, BBB integrity award, and Best Places to Work. For more information about Groundworks, visit www.Groundworks.com, and connect with us on Facebook, Twitter, LinkedIn and Instagram.
About Cortec
Founded in 1984, Cortec focuses on investing in and helping management build entrepreneur- and family-owned middle-market business-to-consumer and business-to-business products and services companies in consumer, healthcare, and other attractive end markets. Cortec partners with owners 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.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit, and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life, and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
