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The mission of Sarasota-based Gravitas, a group of investors with high confidence in the comeback potential of the Gulf Coast construction market, has turned to mason.
That's the core behind Gravitas' latest reclamation project: a masonry block manufacturing facility in LaBelle, the county seat of Hendry County. Led by longtime Sarasota banker Susan Flynn, Gravitas bought the masonry firm, formerly Kenton Industries, in a deal announced July 12.
Gravitas executive Randy Whitmer declined to elaborate on what the firm paid for Kenton, only to say it was “a fraction of what was left on the debt.” Gravitas bought the business from Synovus Bank.
Moreover, Gravitas didn't receive any county or state subsidies for the acquisition. That's a rarity these days, when taxpayer-funded incentives are doled out with increasing speed in the name of economic development.
Kenton shut down its operations last year, according to Gravitas, including all work at its 25,000-square-foot facility built in 2007. Kenton officials couldn't be reached for comment.
The new Gravitas-owned firm, now Industria Block Company, rehired most of the Kenton employees. Industria executives also bought new equipment and repaired other machines.
Whitmer will run operations at Industria. He says even though the construction industry is in a sizeable downturn, there are niche opportunities for companies with the right combination of low overhead and low prices. “It's still an extremely challenging market,” Whitmer tells Coffee Talk. “But we think this is a good time be aggressive. We think long-term the market is going to turn around.”
This is the second time Gravitas has saved a Gulf Coast construction industry firm.
In February, Gravitas bought the debts of Charlotte County-based Colonial Construction Co., which filed for bankruptcy in 2010. Colonial produces pre-stressed structural floor and roof concrete. Gravitas turned it into two firms, and just like with Kenton, most of the jobs were saved when Gravitas took over. (See Business Review, March 11, 2011.)
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