Black-controlled Investment Company Acquires Industrial Services Company Amidst Escalating Energy Demand
In a significant move, Ariel Alternatives, the private equity arm of Ariel Investments, has announced the acquisition of Groome Industrial Service Group. This strategic partnership is expected to bring about growth and accomplishment for both parties.
Ariel Alternatives, one of the largest Black-owned money managers in the US, was founded by business leader Mellody Hobson. Known for her roles in corporate leadership and community outreach, Hobson also serves as the co-CEO and president of Ariel Investments, leading the firm’s strategic direction. Under her leadership, Ariel Alternatives has made important investments in diverse and underserved companies and communities, reflecting its focus on socially conscious investing.
The acquisition of Groome, a provider of industrial cleaning and maintenance solutions, is particularly timely. Groome is thought to be well-positioned to capitalize on current trends, providing outsourced, specialized maintenance and cleaning solutions to a growing industry. The deal comes amid surging energy demand, fueled by the rise of AI, the rapid buildout of data centers, and an aging US power generation fleet.
JPMorgan Chase & Co. has joined the deal with a minority stake through its asset management division. Les Brun, Co-Founder, Chairman, and Chief Executive Officer of Ariel Alternatives, is excited about the partnership with Groome, expressing optimism about the potential for growth and success.
Mellody Hobson, the founder of Ariel Alternatives, has had an illustrious career. She has served as a board member of the Esteé Lauder Companies and was the chairman of the board of DreamWorks Animation before it was sold in 2016. Hobson is also known for her work in the community, serving as the chairman of After School Matters, a non-profit in Chicago that provides high-quality after-school and summer programs for teens.
Hobson's latest venture, Ariel Alternatives, recently raised $1.45 billion for its private equity fund for minority-owned businesses, Project Black. The acquisition of Groome is expected to help the company expand its market share by tapping into Ariel Alternatives' ties in the energy and utilities sector.
With this strategic partnership, both Ariel Alternatives and Groome Industrial Service Group are poised for growth and success in the rapidly evolving industrial landscape.
