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Michigan deal sustains Groundworks' national foundation brand pursuit

Sources: Groundworks Companies, Virginia Beach, Va.; CP staff

The largest privately owned foundation services operator has closed on Foundation Systems of Michigan, bringing the Groundworks Companies' footprint to 24 states, 2,000 employees and annual revenues upward of $500 million. The transaction is the suitor's 16th in four years and marks the latest step toward creating the first national brand in concrete lifting, foundation or crawl space repair, and basement waterproofing services.

"Foundation Systems is unparalleled in the state of Michigan for its brand, quality service, and history of protecting consumers' homes," says Groundworks CEO Matt Malone. "With this acquisition, we add a brand and a team that is one of the best in the entire Midwest, and enter a mission-critical market essential for our goal of becoming the first and only national player in the foundation services industry. While the vast majority of our competitors are laying off employees and taking governmental assistance, we at Groundworks continue to grow, expand, and serve our communities, teammates, and customers."

Like Groundworks' other brands, Foundation Systems will retain its brand identity to preserve the consumer recognition and goodwill established during its 12 years in business, while also gaining a national warranty that transfers when a home is sold. Groundworks plans significant capital investments that will drive geographic expansion throughout Michigan as well as into northwest Ohio and northeast Indiana, enhance employee training and development, and provide new consumer technologies and back-office support.

The acquisition follows last month's addition of Alabama-based AFS Foundation & Waterproofing Specialists to the portfolio of Groundworks, which began acquiring peer operators in May 2016 to bring the fragmented foundation services industry under a coast to coast umbrella benefitting consumers and tradespeople alike. Earlier this year, the company partnered with the Cortec Group, a multi-billion-dollar private equity firm, to accelerate the acquisition process and support organic expansion.