Argosy Private Equity's Strategic Growth through Groome Exit
Argosy Private Equity's Strategic Growth through Groome Exit
Argosy Private Equity, recognized as a key player within the lower middle market, has recently completed its exit from the investment in Groome Industrial Service Group, marking a significant milestone. This decision reflects Argosy's commitment to driving value and growth in the firms it partners with. Founded in 1969, Groome Industrial Service Group has established itself as a premier provider of specialized maintenance services across various sectors, including energy, manufacturing, and aviation.
With headquarters in Denville, Groome's extensive service offerings encompass a range of specialty maintenance tasks that include industrial cleaning, HRSG maintenance, and hangar door design and maintenance. The company is inspired by a commitment to safety and efficiency, striving to enhance equipment performance and prolong asset life for its diverse clientele in the industrial sector.
Partnership Growth and Development
Argosy Private Equity initially joined forces with Groome in September 2019, implementing its distinct Value Acceleration Methodology (VAM™). This strategic approach was pivotal in advancing Groome's operations and market presence. Under Argosy’s guidance, Groome expanded geographically, diversified its service offerings, and pursued multiple strategic acquisitions including ExPro, Blasting Solutions, and W-S Companies. The results were impressive, showing an EBITDA growth of over 900% throughout Argosy's investment period.
Impact of Acquisitions
The acquisitions made by Groome have been instrumental in fostering new avenues of growth. As noted by Keven Shanahan, Managing Partner at Argosy, these strategic moves enabled Groome to serve its clients better and unlock additional cross-selling opportunities, particularly across power and industrial markets.
Collaboration for Success
Throughout the partnership, leadership representatives from both companies have highlighted the collaboration's importance. Lane Wiggers, another Managing Partner at Argosy, stressed the value of enhancing Groome's sales framework and finance organization, which has laid the groundwork for sustainable growth. The synergy between Argosy and Groome has fortified their operational effectiveness, setting the stage for long-term success.
Jeff Bause, Groome’s President & CEO, expressed pride in seeing the company evolve into a dedicated organization with a culture of excellence and employee engagement. This transformation has been significantly supported by Argosy's insightful strategies, aligning the companies' mutual objectives and paving the road for future achievements.
Financial Advisory and Industry Leadership
Baird has served as the exclusive financial advisor during this transition, marking a key role in facilitating Groome’s successful exit from Argosy. As the maintenance service industry evolves, Groome remains a proactive leader, focusing on how its services not only enhance industrial equipment performance but also contribute to reducing harmful emissions.
With over 50 years of experience, Groome is renowned for its commitment to operational excellence and its role in transforming how maintenance is approached across multiple industries. Their innovative services and dedicated labor force have solidified their place as the preferred provider in the maintenance sector.
About Argosy Private Equity
Founded in 1990, Argosy Private Equity has steadily grown to become a major player in nurturing U.S. manufacturing and business services companies. By focusing predominantly on family or founder-owned firms with potential for growth, Argosy's investment approach spans a diverse portfolio across multiple funds with over $1.1 billion in assets under management as of mid-2025.
With an impressive track record, Argosy has successfully facilitated over 135 investments, targeting firms that boast an EBITDA between $3 to $10 million. Their expertise has proven invaluable for companies looking to improve their operational models and drive meaningful enhancements, ensuring that Argosy continues to be a partner of choice for many.
Frequently Asked Questions
What services does Groome Industrial Service Group offer?
Groome provides a wide range of specialty maintenance services tailored for various industries such as power generation, aviation, and manufacturing.
When did Argosy Private Equity partner with Groome?
Argosy partnered with Groome in September 2019, focusing on enhancing its market capabilities through a tailored strategy.
How did Argosy's involvement impact Groome's growth?
Argosy’s strategies led to significant growth in Groome, including an increase in EBITDA by over 900% during the investment period.
What is the Value Acceleration Methodology (VAM™)?
The VAM™ is a strategic approach by Argosy aimed at enhancing the operational and market performance of companies.
What is Argosy's investment focus?
Argosy primarily invests in U.S. manufacturing and business services companies that have substantial potential for growth, typically focusing on family or founder-owned firms.
About The Author
Contact Henry Turner privately here. Or send an email with ATTN: Henry Turner as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.
