Del Monte Capital's Major Investment in Cornerstone Companies Fuels Infrastructure Growth

Del Monte Capital's Strategic Move in the Infrastructure Sector

In a significant development for the infrastructure landscape in Texas, Del Monte Capital (DMC), a private equity firm focused on lower middle-market companies, revealed its majority recapitalization of the Cornerstone companies. This deal includes Cornerstone Excavating and Cornerstone On-Site Concrete, both of which are primarily based in the Dallas-Fort Worth area. This investment positions these companies to not only expand geographically but also take advantage of the growing opportunities within the vital infrastructure sector.

Cornerstone Companies: Leaders in Infrastructure Solutions

Founded in 2002 by David Stocker, Cornerstone Excavating has carved a niche as a reliable provider of turnkey infrastructure solutions, specializing in excavation and underground utility installations for critical projects. This includes operation on essential infrastructures like data centers and water treatment facilities. On the other hand, Cornerstone On-Site Concrete, which began its journey in 2016, delivers customized concrete solutions via its fleet of volumetric mixer trucks. This innovative approach allows for precise, cost-effective on-site concrete production to meet the demands of complex projects.

A Vision for Future Growth

David Owen, who has been pivotal in the growth of the Cornerstone companies, has acquired significant ownership and will continue to lead the operations forward. "I'm excited about this next phase of growth for Cornerstone and appreciate the partnership with Del Monte Capital," stated Owen. He emphasized the importance of this investment in broadening their customer offerings and penetrating new markets.

David Stocker remarked on the positive working relationship with Del Monte Capital during this transaction. "Their professionalism, expertise, and shared vision have made this partnership possible, ensuring that Cornerstone continues to innovate and thrive in the industry," he explained. Stocker will retain an ownership position and assist through a consulting role to help shape the strategic direction of the company going forward.

Del Monte Capital's Unique Investment Approach

Ross Canion, Managing Partner at Del Monte Capital, highlighted the strategic nature of this investment, describing Cornerstone as an exceptional company with a robust reputation for quality and service. As technology progresses, especially in terms of digital computing and artificial intelligence, Del Monte Capital believes this investment adopts a 'picks and shovels' approach to capitalize on the infrastructure boom. It underscores their commitment to enhancing water and wastewater plants and other essential infrastructures that are imperative to support Texas's rapid growth trajectory.

Support and Collaboration

The successful execution of this transaction was supported by legal counsel Troutman Pepper Locke for Del Monte Capital, while Woodforest National Bank facilitated the financing. Legal representation for the seller was provided by Blank Rome, ensuring that all aspects of the deal were meticulously managed.

Moving Forward

Together, Cornerstone Excavating and Cornerstone On-Site Concrete serve a diverse portfolio of clients that encompass major tech enterprises, municipalities, and industrial facilities aimed at development across Texas. The future looks bright as these companies aim to leverage this partnership, expand operations, and continue to provide exceptional services.

For further details, one can visit their respective websites, with the Cornerstone companies available at cornerstonedfw.com and Del Monte Capital at delmontecap.com. This strategic partnership not only fortifies the position of the Cornerstone companies but also ensures a progressive path as they adapt to evolving market demands.