Cortec Group has recapitalized Richmond, Virginia-based Groome Holdings LLC, a specialty ground transportation provider. No financial terms were disclosed. Harris Williams & Co. served as financial adviser to Groome on the transaction with Williams Mullen providing legal advice. And, Paul Hastings LLP served as legal adviser to Cortec. TwinBrook Capital Partners, Capital One N.A. Sponsor Finance and NewStar Financial provided the senior debt to back the recapitalization.
(New York, NY) – Cortec Group (“Cortec”), a New York-based private equity firm that specializes in investing with entrepreneur owners of middle market specialty services, consumer, healthcare, and distribution businesses, announced that on January 8, 2018, a group led by its affiliate, Cortec Group Fund VI, L.P. (“Cortec Fund VI”), in partnership with management, recapitalized Groome Holdings, LLC (“Groome” or the “Company”). Terms of the transaction were not disclosed.
Headquartered in Richmond, Virginia, Groome is a leading specialty ground transportation provider operating across 12 states and in two segments: Airport Shuttle, which offers medium to long-haul scheduled van service between major airports and distant regional markets; and Contract, which provides contracted closed-loop campus shuttle services to academic and institutional clients.
“Groome was a very attractive investment opportunity for Cortec for several key reasons: (i) the Groome family has built a well-respected brand recognized for consistent excellence across its markets and service offerings, (ii) the management team, and most importantly CEO Vince Groome, viewed Cortec’s business acumen and successful history partnering with entrepreneurs to continue growing their companies as favorable differentiators, and (iii) management and Cortec had a shared vision of Groome’s future”, said David Schnadig, a Managing Partner at Cortec.
“We look forward to supporting Vince Groome and the management team in their efforts to continue driving future growth through new market expansion via greenfield facilities and acquisition, and securing new long-term contracts with leading universities and healthcare campuses”, added Jonathan Stein, a Cortec Partner.
The Groome family, which has owned the Company for three generations, will remain significant investors and Vince Groome will continue to lead the business as CEO. Mr. Groome stated,
“From our first meeting, it was evident that Cortec was different than the other private equity firms that pursued us. They did a lot of work up front, so they were knowledgeable of our business. At the same time, they were curious to learn more and really respectful of what my family, my management team and I have built. Even better, their track record of successfully building family-owned businesses was unmatched. Hands down they were easily our top choice.”
The Groome partnership represents Cortec Fund VI’s fourth platform investment. Harris Williams & Co. served as financial advisor and Williams Mullen served as legal advisor to Groome. Paul Hastings LLP served as legal advisor to Cortec. Senior debt to support the recapitalization was provided by TwinBrook Capital Partners, Capital One N.A. Sponsor Finance, and NewStar Financial.
Groome is a leading provider of specialty transportation services, operating in both the airport shuttle and closed-loop campus shuttle markets. The Company provides safe, reliable and comfortable transportation to over one million airport shuttle passengers annually and partners with many leading universities and hospitals across the U.S. to manage their campus transportation programs. The Company was founded by the Groome family in 1934 in Richmond, Virginia where it remains headquartered today. To learn more about Groome, please visit www.groometransportation.com.
Founded in 1984, Cortec invests in high value-added, middle-market specialty service, consumer, healthcare, and distribution businesses in partnership with owners and management teams who want to work with Cortec to drive growth and improve business fundamentals. Additional information about Cortec can be found at www.cortecgroup.com.