KKR announces significant investment in Groundworks

Groundworks, a foundation repair and water management services company, and KKR announced a significant investment in Groundworks as part of a new strategic partnership with KKR. Cortec Group, Groundworks’ current growth partner, will remain an important shareholder in the Company and member of the board of directors. Founded in 2016, Groundworks has more than 4,000 employees operating in 33 states providing residential foundation and water management solutions, including foundation repair, basement waterproofing, crawl space repair and encapsulation, plumbing, gutter installation, and concrete lifting services. As part of this transaction, Groundworks will expand its equity ownership program to make all employees owners of the Company. This strategy is based on the belief that employee engagement is a key driver in building stronger companies. KKR is making the investment primarily through its North America XIII Fund. The transaction, which is subject to receipt of required regulatory approvals and satisfying other customary closing conditions, is expected to close in the Q1. Harris Williams served as exclusive financial advisor and Paul Hastings served as legal counsel to Groundworks. Deutsche Bank Securities and William Blair & Company, served as buyside financial advisors and Simpson Thacher & Bartlett served as legal counsel to KKR.