GroffTractor announced on April 6 that it has partnered with Prophet Equity II LP to make an equity investment to acquire an interest in Groff Tractor.
Groff Tractor announced on April 6 that it has partnered with Prophet Equity II LP to make an equity investment to acquire an interest in Groff Tractor.
Headquartered in Pennsylvania with 11 1ocations that serve Pennsylvania, Maryland, New Jersey, Virginia and West Virginia, Groff is one of the largest CASE Construction dealerships in the United States. With a focus on construction equipment offered by CASE Construction, Wirtgen America and other leading construction equipment manufacturers, Groff is one of the largest dealers in its regions with an emphasis on unmatched customer service.
Since 2001, when Mike Savastio, Lamar Light & Jim Price joined forces with Ken Groff as part of his succession plan for the company, the business has experienced a dramatic growth which has seen the company grow fivefold during the last 15 years. "We have gone from being a little family owned business to a much larger business, "said Michael Savastio, President of Groff Tractor. "We pride ourselves in providing our customers with an ease of doing business backed up with industry leading level of service. We truly value the relationship with our customers and take pride in becoming a true partner to help them with all of their equipment needs. In order to maintain our ability to continue to grow and service our customer's needs, while at the same time establish a long term succession plan for the company, the Board of Directors developed a strategic plan for the company a few years ago. It became apparent that the best way to perpetuate the company into the future was to ultimately seek out a strategic financial partner to join forces with Groff Tractor. When we first met the Prophet Equity team, there was an immediate cultural fit and a common vision on how to take care of customers, how to take care of employees and how to grow our business.
Jim Price, Groff Tractor Executive VP/ CFO, and I will maintain our shares and positions in the company and the Prophet Equity investment will be used to replace outside family shareholders and establish a true succession plan for the company to make sure it continues long into the future. It will also expand our financial resources that will allow us to continue to support our organic growth in our current branches plus help to facilitate our strategic expansion opportunities that exist in the current market. I could not be more pleased for our customers, our dedicated employees and our shareholders to have the opportunity to join forces with Prophet Equity, and I am excited to get started."
Brian Hegi, Managing Director at Prophet Equity, commented, "We are honored to have the opportunity to partner with Mike Savastio, Jim Price and Groff's talented employee base to support its strategic growth initiatives. Through its reputation for top customer service and its strategic relationships with CASE Construction, Wirtgen America and the other leading construction equipment manufacturers they represent, there are a great opportunities to grow organically, through geographic expansion and through acquisition to strengthen Groff's market share in the MidAtlantic region."
"Prophet Equity has deep experience investing in heavy equipment and equipment rental businesses," commented Ross Gatlin, Prophet Equity's CEO and Managing Partner. "With our strong track record of identifying and investing in companies like Groff that have unique strategic strength and significant growth opportunities, we look forward to being a strategic, operational and financial partner to the entire Groff team."
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