Cortec bets on growing need for shuttle services, takes stake in Groome Transportation
Cortec Group has acquired a stake in family-owned transportation provider Groome Holdings. The private equity firm will help grow the business into new markets organically and through acquisitions.
Richmond, Virginia-based Groome, founded in 1934, provides airport and campus shuttle services across 12 states most in the South and Southeast. The company also provides transportation for corporate and private events. Groome's founders and management team will remain invested in the company.
“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," says Cortec partner Jonathan Stein.
Cortec Group is a New York-based middle market private equity firm that invests in businesses that have up to $35 million in Ebitda and $300 million in revenue. The firm focuses on the healthcare and services sectors.
In other transportation deals, in 2017, Delphi Automotive Plc (NYSE: DLPH) bought self-driving car maker nuTonomy; Daseke Inc. (Nasdaq: DSKE) added three trucking companies; and Federal Signal Corp. (NYSE:FSS) acquired Truck Bodies and Equipment International.
Harris Williams & Co and Williams Mullen advised Groome. Paul Hastings represented Cortec, which received financing from TwinBrook Capital Partners, Capital One and NewStar Financial. Financail terms of Coretc's investment were not disclosed.