NORFOLK, VA – Succession Capital Partners Portfolio Company, Groundworks Companies®, the nation’s largest privately owned foundation services company, today announced its 16th acquisition in four years and a key geographic expansion with the purchase of Foundation Systems of Michigan (FSM). The transaction is the latest step in Groundworks’ mission to create the first national brand to provide foundation repair, basement waterproofing, crawl space repair, and concrete lifting, with a footprint that now spans 24 states, 2,000 employees, and just under half a billion dollars in annual revenue.
FSM is the largest foundation services company in both Michigan and the Midwest as well as one of the country’s fastest-growing with two new offices and an average 20% annual growth rate in the last five years. This acquisition follows last month’s addition of Alabama-based AFS Foundation & Waterproofing Specialists to the Groundworks brand family, adding two of the largest firms in the sector in just five weeks.
Groundworks began acquiring industry-leading companies in May 2016 to bring the fragmented foundation services industry under a single national umbrella to benefit consumers and tradespeople alike. In January the company partnered with the Cortec Group, a multi-billion-dollar private equity firm, to accelerate the acquisition process as well as Groundworks’ organic expansion.
“Foundation Systems of Michigan is unparalleled in the state of Michigan for its brand, quality service, and history of protecting consumers’ homes. Our partnership with Bob Genord, his family, and the over 200 employees of FSM continues our transformational evolution for our industry,” said Matt Malone, Managing Partner of Succession Capital Partners. “With this acquisition, we add a brand and a team that is one of the best in the entire Midwest, and we 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.
“This partnership is another important step in our efforts to build a national platform offering superior foundation and water management services along with professional growth opportunities for the skilled tradespeople who work in the industry.”
Like Groundworks’ other brands, FSM 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 FSM 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.
“We have experienced remarkable growth over the past five years, including our recent expansion into Western Michigan. Joining the Groundworks group enables FSM to expand further, faster with more resources to serve the people of Michigan and beyond. Equally important to me and my family, the Groundworks partnerships offers my employees tremendous new opportunities for professional growth and development,” said Bob Genord, CEO and Founder of Foundation Systems of Michigan. “I selected Groundworks as FSM’s partner because of our aligned core values and vision for the future of this industry. FSM and Groundworks will continue to serve our customers and employees while also evolving this industry together.”
The transaction closed on July 9, 2020. Financial details were not disclosed.
About Succession Capital
Succession Capital is the only professional buy-out firm headquartered in the Virginia Beach/Norfolk area. Succession owns A-1 Plumbing, Foundation Recovery Systems, BizWiz Management Systems, Complete Basement Systems, Hayes Software Systems, Indiana Foundation Service, Independence Materials Group, Innovative Basement Authority, JES Foundation Repair, Mount Valley Foundation Service, Ohio Basement Authority, Ohio Basement Systems, and Groundworks Companies. For more information about Succession Capital Partners, please visit https://www.successioncp.com/
Groundworks® is the nation’s largest privately held foundation services company. Headquartered in Virginia Beach, VA, the company provides foundation repair, basement waterproofing, crawl space repair and encapsulation, and concrete lifting. Groundworks is comprised of AFS Foundation & 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™. Since 1986, the combined companies have helped nearly 1 million homeowners protect and repair their most valuable asset, their home. Groundworks operates over 30 offices that serve Alabama, Arkansas, Colorado, Florida, Georgia, Indiana, Illinois, Iowa, Kansas, Maryland, Michigan, Minneapolis, Missouri, Mississippi, Montana, Nebraska, North Carolina, North Dakota, Ohio, South Carolina, Tennessee, Virginia, West Virginia and Wisconsin. The company has been named numerous times to the Inc. 5000 Fastest Growing Companies, BBB integrity award, and Best Places to Work.
For more information, visit https://www.GroundworksCompanies.com.