1. JPMorgan made a minority co-investment in Groome Industrial. 2. Groome specializes in maintenance solutions for power generation and utilities. 3. The deal is positioned to capitalize on rising energy demand. 4. Ariel Alternatives aims for rapid market share growth with Groome. 5. Groome employs 900, enhancing service capabilities across the U.S.
JPM's investment reflects growing opportunities in energy services market; historically, similar investments have enhanced stock performance.
The deal signifies JPM's strategic positioning in high-growth sectors, likely boosting investor confidence.
The energy sector's growth is projected to be sustained due to rising demand, indicating ongoing benefits for JPM over time.
Deal Expands Firm into Energy and Utility Services Amid Global AI and Data Center Growth
Private investment firm Ariel Alternatives, LLC today announced the acquisition of Groome Industrial Service Group ("the Company" or "Groome"), a leading provider of specialty maintenance solutions serving power generation, diversified heavy industrial and municipal end markets, from Argosy Private Equity. JPMorgan Chase & Co. (NYSE:JPM) made a minority co-investment alongside Ariel Alternatives, through its asset management division. Terms of the transaction were not disclosed.
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For more than 55 years, Groome has delivered specialized maintenance services nationwide across the power generation sector and other critical infrastructure. The Company employs approximately 900 people—of whom 830 are technicians—across more than 20 U.S. locations. Amid rising energy demand driven by artificial intelligence, data center growth and an aging U.S. power generation fleet, Groome is well-positioned to meet increasing industry needs for outsourced, specialized maintenance and cleaning solutions.
Les Brun, Co-Founder, Chairman and Chief Executive Officer of Ariel Alternatives said: "At Ariel Alternatives, our mission is to support companies and leadership teams with a bold vision for growth and the talent to realize it. In Jeff and the Groome team, we have found exactly that. We are energized by the partnership and confident in what we will accomplish together."
The acquisition will enable Groome to leverage Ariel Alternatives' significant relationships in the energy and utility space, with the intent of faster market share growth.
Jeff Bause, President and Chief Executive Officer of Groome Industrial Service Group said: "This milestone marks a new chapter for Groome Industrial Service Group. On behalf of the management team, we could not be more confident that Ariel Alternatives is the right partner to help us unlock our full potential. With access to their operating advisors, deep industry relationships and significant backing to pursue accretive acquisitions, we are excited by the opportunities ahead. This investment underscores our shared commitment to accelerating growth while staying true to our mission of delivering unique, turnkey solutions for our customers."
Yue Bonnet, Senior Managing Director and Head of Investments at Ariel Alternatives added: "Jeff and the Groome executives are well-positioned to scale the Company to meet the growing demands of today's energy and industrial environment. The energy and utility services ecosystem is a strategic priority for Ariel Alternatives, and we are proud to back a strong business as it reaches its next stage of growth."
Massumi + Consoli LLP served as a legal advisor to Ariel Alternatives, and Baird served as exclusive financial advisor to Groome.
About Groome Industrial Service Group
For over 55 years, Groome Industrial Service Group has provided specialty maintenance solutions including patented KinetiClean, catalyst emissions control, industrial cleaning, mechanical services and industrial coatings nationwide. Groome proudly services several industries including natural gas-fired generation, refinery, shipping, manufacturing and aviation. As a proven industry leader focused on innovative methods and the future, our unique turnkey services reduce harmful emissions, improve plant performance and extend the life of valuable industrial equipment. With one of the nation's widest service offerings and more than 20 locations throughout the United States, Groome has you covered no matter the industry or location.
About Ariel Alternatives, LLC
Ariel Alternatives, LLC, is a private asset management firm affiliated with Ariel Investments, LLC. The firm's inaugural fund closed with $1.45 billion in committed capital from limited partners and co-investors and seeks to scale sustainable, market-leading businesses in high growth sectors serving Fortune 500 enterprises. Ariel Alternatives pursues a "demand-driven" investment strategy, targeting businesses that are "employers of choice" with market leading positions that can deliver meaningful innovation and value to customers.
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Media Contacts
Groome Industrial Service Group
Steve Houghton: shoughton@groomeindustrial.com
Matt Del Turco: mdelturco@groomeindustrial.com
Ariel Alternatives
Roopa Weber: communications@arielinvestments.com