Partnership with AFS Merges Nation’s Leading Foundation Services Companies
VIRGINIA BEACH, VA (June 8, 2020) –Succession Capital Partners Portfolio Company, Groundworks ®, the nation’s largest privately owned foundation services company, today announced its 15th acquisition in four years with the purchase of Alabama-based AFS Foundation & Waterproofing Specialists. The partnership joins two of the largest foundation services companies in the U.S. with a combined footprint spanning 23 states, 1,800 employees and more than $300 million in annual revenue.
The acquisition advances Groundworks’ mission of creating the first national brand to provide foundation repair, basement waterproofing, crawl space repair and encapsulation, and concrete lifting. The initiative began in May 2016, when Groundworks had just 190 employees in two states, revenues of $30 million, and a vision of bringing a fragmented industry under a single national umbrella to deliver world-class, consistent and uniform water management solutions to consumers while also providing professional growth opportunities for the skilled tradespeople of the foundation services industry.
AFS Foundation & Waterproofing Specialists is Groundworks’ largest acquisition to date, adding over 300 employees, more than $65 million in annual revenue, and seven offices serving Alabama, most of Tennessee, and several Georgia and Mississippi cities to the Groundworks brand family. The acquisition strengthens Groundworks’ presence in the Southeast and provides a launch pad for additional expansion in the region.
Groundworks partnered with the Cortec Group, a multi-billion-dollar private equity firm, in January to accelerate its organic and acquisitive expansion.
“AFS is not only the largest foundation services company in the Southeast. It’s also the best. Our partnership with the Bayless family and AFS team is transformational for our industry, as well as a strong cultural fit for our company in terms of their approach to the market, dedication to superior customer service, and commitment to their team,” said Matt Malone, Managing Partner of Succession Capital Partners. “With this acquisition, we now have a presence in nearly half the states in the U.S., we have served nearly l million homeowners, and we have added another important building block toward our goal of becoming the first and only national player in a $5 to $6 billion industry.”
Like Groundworks’ other brands, AFS will retain its brand identity and ties to the local community to maintain the consumer recognition and goodwill established during its 20 years in business. At the same time, AFS will benefit from Groundworks’ large capital investments that will accelerate geographic expansion, enhance employee training and development, and provide new consumer technologies and back-office support. It will also gain the competitive advantage of offering consumers a national warranty that transfers when a home is sold.
“We have been on a remarkable growth track over the last few years, including opening three offices in the last 12 months. Joining the Groundworks group enables us to expand even faster, provide our team with new opportunities for professional growth, and simultaneously allow us to do business with the same values we have embraced for two decades,” said Ben Bayless, CEO and Owner of AFS Foundation & Waterproofing Specialists. “We selected Groundworks as our partner because, like AFS, they care about their people and they care about their customers. This is an ideal partnership that will benefit everyone in our company as well as every customer who uses our services.”
The transaction closed on June 4, 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, PetroChem Recovery Services, Shipyard Staffing, Tar Heel 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™, 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, 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.