Groundworks acquires FSM in Michigan. Groundworks Companies, the nation’s largest privately owned foundation services company, 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. They are doing this with a footprint that now spans 24 states and 2,000 employees. They operate with just under half a billion dollars in annual revenue.
FSM is the largest foundation services company in both Michigan and the Midwest. It is also one of the country’s fastest-growing companies. It has 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.
Acquisition timeline
Groundworks began acquiring industry-leading companies in May 2016. Its goal was to bring the fragmented foundation services industry under a single national umbrella. This was done 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, Chief Executive Officer and Founder of Groundworks.
“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. A vast majority of our competitors are laying off employees and taking governmental assistance. Groundworks, however, continues to grow, expand, and serve their 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.”
Future of FSM
Like Groundworks’ other brands, FSM will retain its brand identity to preserve the consumer recognition and goodwill established during its 12 years in business. They will do this while also gaining a national warranty that transfers when a home is sold. Groundworks plans significant capital investments that will drive FSM geographic expansion. This expansion will happen throughout Michigan as well as into northwest Ohio and northeast Indiana. They will also enhance employee training and development. Additionally, they will 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. It also allows them to expand 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.”
Groundworks acquires FSM and the transaction closed on July 9, 2020. There was no disclosure of the financial details.
About Groundworks
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 consists of AFS Foundation & Waterproofing Specialists™, Complete Basement System, 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. They serve Alabama, Arkansas, Colorado, Florida, Georgia and Indiana. They also serve Illinois, Iowa, Kansas, Maryland, Michigan, Minneapolis, Missouri, Mississippi, Montana, Nebraska and North Carolina. In addition, they have offices in 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 www.
