Pioneer Sand Co. Inc., a leading supplier of landscaping materials based in Colorado Springs, has been acquired by JLL Partners Inc., a private equity firm headquartered in New York. The acquisition, finalized on December 31, marks a significant step for Pioneer Sand And Gravel Colorado Springs, signaling potential expansion and growth in the competitive landscaping market.
JLL Partners has expressed strong confidence in Pioneer Sand and Gravel Colorado Springs, retaining almost all of its 500+ employees. In a communication to the staff, JLL assured that customers would experience uninterrupted service. While the specifics of operational changes remain undisclosed, the focus is on building a stronger, unified company poised for future success in the sand and gravel Colorado Springs and wider regions.
The leadership transition is a key aspect of this acquisition. Michael McGrady, a seasoned professional with over 35 years of experience in the landscaping sector, including a nine-year tenure at Deere & Co., has been appointed as the new CEO of Pioneer Sand and Gravel Colorado Springs. His expertise is expected to steer the company into a new phase of development and market penetration. The previous owners, Gary and Judi Schnurr, who founded Pioneer in 1968, decided to sell the business as they planned for retirement and their children were not interested in taking over the operations. Judi Schnurr mentioned that they engaged an investment banker six months prior and selected JLL Partners from a pool of three bidders.
Eugene Hahn, a Managing Director at JLL, highlighted the strategic rationale behind the acquisition. He stated the significant opportunity to expand Pioneer’s already successful platform, emphasizing Pioneer’s leadership in the growing hardscaping market. The increasing water scarcity in the Sunbelt region and the recovering housing market are expected to further benefit Pioneer Sand and Gravel Colorado Springs, making it a robust investment for JLL Partners. Hahn also expressed enthusiasm about partnering with CEO Michael McGrady, recognizing his extensive industry experience.
Pioneer Sand and Gravel Colorado Springs has established itself as a major player in the landscaping materials supply industry. Boasting 30 locations across Arizona and Colorado, the company is recognized on its website as the nation’s largest landscaping material supplier. Primarily operating retail locations along Colorado’s Front Range, as well as in Phoenix and Tucson, Pioneer caters to a diverse clientele, including landscaping contractors, commercial entities, and homeowners. Their product range is extensive, featuring decorative stone, sand, gravel, mulch, pavers, and retaining walls, all essential for creating beautiful and functional outdoor spaces in Colorado Springs and beyond. Local Colorado Springs retail locations, including those off Garden of the Gods Road, near Black Forest, and in Monument, are set to continue serving the community.
Beyond retail, Pioneer Sand and Gravel Colorado Springs maintains 12 rock quarries and sand pits, alongside a civil construction excavation division and a railroad tie distribution operation. These diverse business segments underscore the company’s comprehensive approach to serving the construction and landscaping industries.
Bill Miles, another Managing Director at JLL, noted that the firm had been researching the industry for over a year and had been in negotiations for several months before the acquisition of Pioneer Sand and Gravel Colorado Springs was finalized. Michael McGrady, the newly appointed CEO, acknowledged Pioneer’s strong market position in the arid Southwest, built on a customer-centric approach. He also pointed out the growth potential of its excavation and railroad tie distribution businesses. McGrady expressed confidence that with JLL’s investment expertise in building products and commitment to supporting growth, Pioneer’s management team is well-equipped to explore new opportunities within its existing markets and expand into new territories.
JLL Partners, since its inception in 1988, has a substantial investment history, managing six funds and investing $4.4 billion in various sectors, including health care, building products, financial services, aerospace, and business services. This acquisition of Pioneer Sand and Gravel Colorado Springs aligns with JLL’s strategy of investing in market-leading companies with strong growth potential.
This acquisition signals a promising future for Pioneer Sand and Gravel Colorado Springs, combining its established market presence with the financial backing and strategic expertise of JLL Partners. The focus remains on delivering high-quality landscaping materials and services to Colorado Springs and beyond, now with the added impetus for growth and expansion under new leadership and ownership.
