Blackford Capital, a lower middle market private equity firm, announced the successful exit from its investment in Grand Equipment Company, (GEC) through a sale to Cognitive Capital Partners, LLC, a Chicago-based investment firm.
Grand Equipment is a multi-line equipment dealer offering the sale and rental of a wide range of heavy construction equipment, both new and used, and provides parts and service to a diverse, resilient customer base, primarily in greater Grand Rapids and the broader Western Michigan market. Blackford Capital acquired GEC, led by founder and CEO Jeff Grasman, through its Michigan Prosperity Fund in 2015. During its time as a Blackford Capital portfolio company, Grand Equipment made investments in its management team, improved equipment mix and its rental fleet, strengthened relationships with customers and OEMs, and used the resulting growth to improve the balance sheet.
"Grand Equipment is excited to continue our growth trajectory in West Michigan with this transition from Blackford Capital to Cognitive Capital Partners," said Grasman, Grand Equipment CEO. "We successfully partnered with the Blackford team to grow the organization and look forward to a future of additional regional growth, deepened market share and an increased footprint."
Today, with the construction industry projected to grow 8.8 percent in 2022 to reach $1.35 trillion and $1.65 trillion by 2026, the opportunities for Grand Equipment to accelerate growth and market expansion are significant.
"Our investment thesis is rooted in a commitment to buy at a fair value, operate effectively, focus on top-line growth, and professionalize organizations overall – setting them up for their next stage of growth," said Martin Stein, Founder and Managing Director of Blackford Capital. "Although we faced several challenges along the way – not the least of which was the market downturn driven by the impacts of the COVID-19 pandemic – ultimately our work with Jeff and the Grand Equipment team has delivered a positive return to our investors. Cognitive Capital will be a strong partner for Grand Equipment to deliver steady growth across short, medium and long-term perspectives."
Chicago-based Cognitive is focused on investing in leading companies in technical and business services, and manufacturing and industrial products and services. Its blend of investing and operating expertise is well-suited to support Grand Equipment management and drive continued growth and value creation.