Prophet Equity (“Prophet”), a Southlake, TX-based private equity firm, announced the successful sale of the Pennsylvania platform of Groff Tractor & Equipment (“GT&E” or the “Company”) to a family office buyer.
In April 2016, Prophet partnered with GT&E leadership to make an equity investment to acquire a controlling interest in the Company. Since that time, GT&E has grown from six locations, all in Pennsylvania, to 15 locations by way of three add-on acquisitions, with operations in Maryland, Delaware, New Jersey and Philadelphia. One of the largest Case construction dealers in the U.S., the company has grown via acquisitions and focused on rental fleet buildout, resulting in revenue and EBITDA growth north of 250%. Though the original investment of the PA operations was divested, Prophet maintains its ownership in GT Mid-Atlantic (“GTMA”).
Charles Collie, Managing Director at Prophet Equity said, “We have enjoyed a tremendous run with the management team at GT&E, working with them to build out a highly successful Value Creation Plan. Their focus has enabled the Company to outperform in a highly competitive market. We look forward to continuing that success with the team at GTMA.”
Ross Gatlin, Managing Partner at Prophet Equity said, “The deployment and execution of our Holistic Value Creation™ (HVC™) process at GT&E translated into a highly successful outcome for all investors and stakeholders. It has been an honor working with such a talented team at GT&E, and we wish them and the Company the very best in their next phase of growth.”
TM Capital served as exclusive financial advisor and Jackson Walker as legal counsel to Prophet Equity.