Ariel Alternatives is taking its stake in energy and utility services.
Ariel Alternatives, LLC is a private equity subsidiary of Ariel Investments, founded by Mellody Hobson and Leslie A. Brun. Alongside JPMorgan Chase & Co., which made a minority co-investment, Ariel Alternatives has acquired Groome Industrial Service Group (Groome).
According to a news release, Groome employs nearly 900 people across its 20 U.S. locations and provides maintenance solutions for industries such as natural gas-fired generation, refinery, shipping, manufacturing, and aviation.
“We are energized by the partnership and confident in what we will accomplish together,” Ariel Alternatives Co-Founder, Chairman, and CEO Brun said in the news release.
The acquisition comes amid rising AI adoption, data center growth, and an aging U.S. power generation fleet. Groome representatives noted the company is well-positioned to meet today’s market needs and remain confident that the company will benefit from Ariel Investments’ network in the energy and utility space.
“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,” Jeff Bause, president and CEO of Groome, said in the news release.
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.”
This marks yet another acquisition for Ariel Alternatives. As AFROTECH™ previously reported, the company purchased the majority stake in My Code back in 2023. Falfurrias Capital Partners, the existing shareholder, maintains a minority interest. The acquisition was made possible through Alternatives’ “Project Black Fund,” which invests in “middle-market companies that may not currently be minority-owned,” per a news release. The fund includes a $1.45 billion commitment from limited partners and co-investors and a $200 million commitment from JPMorgan Chase & Co.
