Groff Tractor Announces Acquisition of Folcomer Equipment
The deal, effective immediately, creates three business entities under the parent company, Groff Tractor Holding LLC.
📅 Fri September 08, 2017 - National Edition
"With the new addition of Folcomer Equipment, the Groff Tractor family will now become a more than $200 million operation with 15 locations across Maryland, Delaware, New Jersey and most of Pennsylvania," said Mike Savastio, president of Groff Tractor & Equipment.
Groff Tractor has acquired Folcomer Equipment Company of Maryland.
The deal, effective immediately, creates three business entities under the parent company, Groff Tractor Holding LLC:the original Groff Tractor & Equipment in Pennsylvania;Groff Tractor New Jersey (formerly Trico Equipment); andthe newly formed Groff Tractor Mid Atlantic (Folcomer Equipment branches combined with the existing Groff Tractor & Equipment Frederick branch, when the two are merged in the future).
“Over the past 16 years, Groff Tractor has been fortunate enough to have a group of dedicated employees that has allowed it to grow from a $30 million company operating out of five locations to a $165 million company operating out of 11 locations,” said Mike Savastio, president of Groff Tractor & Equipment. “With the new addition of Folcomer Equipment, the Groff Tractor family will now become a more than $200 million operation with 15 locations across Maryland, Delaware, New Jersey and most of Pennsylvania.”
Savastio added that during his 16-year tenure at Groff Tractor, both his company and Folcomer Equipment have enjoyed a great relationship on both a business and personal level with Dave and Ann Folcomer.
“We have supported each other as good neighbors and have always tried to help each other out with equipment needs, demos or parts support,” Savastio said. “Folcomer Equipment has done an outstanding job of servicing customers over the past 25 years in the Maryland and Delaware markets and has been a company that Groff Tractor has admired from the outside. We are honored to have been chosen and look forward to serving the customers and employees of Folcomer Equipment as we move forward.”
Dave Folcomer, owner of Folcomer Equipment Company, will become the president and COO of Groff Tractor Mid Atlantic, and will be in charge of day-to-day operations. Ann Folcomer will be the controller of Groff Tractor Mid Atlantic and will be responsible all accounting functions.
“This acquisition will provide our customers more access to larger equipment, as well as to a larger range of rental equipment options,” Folcomer said. “Equipment pricing also will be more competitive because we'll be able to buy in larger quantities and get larger discounts.”
Folcomer was pleased that his company's employees will be taken care of, as well.
“Groff was very fair to our employees and they put out a nice plan for everybody; we expect to retain all the employees,” he said. “We're looking forward to continuing the business with Groff and our business will be bigger and better with Groff.”
Jim Price, CFO of Groff Tractor said, “Both companies have operated very similarly to each other, including representing many of the same manufacturers. The similarities will allow both operations to take advantage of economies of scale, support each other, and develop synergies that will provide greater customer support.”
The existing Groff Tractor facility in Frederick, Md., will eventually merge with the Folcomer branch to become a single Groff Tractor Mid Atlantic Branch. This will happen sometime in the next 90 days.
As the company moves forward with this exciting acquisition, all Groff Tractor locations and employees will continue to assist customers with the best possible service. Taking care of customers has been and will continue to be their number one priority, according to Groff Tractor.
For more information, visit www.grofftractor.com.