Ozinga Brothers Infight with Suit Targeting CEO Marty Ozinga

A civil war is erupting within the Ozinga concrete dynasty, threatening to crack the foundation of one of the most influential forces in Chicago’s construction materials and real estate industries.

Brothers Justin and Karl Ozinga filed a lawsuit Wednesday against their four other brothers in Cook County court, alleging that their sibling and CEO of Mokena-based Ozinga, Martin “Marty” Ozinga IV, has orchestrated a “calculated effort” to strip them of their oversight of the prominent multi-generational family business.

The lawsuit, seeking emergency injunctive relief, claims Marty is attempting to bypass a strict family consensus requirement to push through a $50 million acquisition of a rival ready-mix concrete company.

“Our clients, Justin and Karl Ozinga, have been a big part of the Ozinga story, which is the story of a great Chicago family and an iconic Chicago company. Everyone who lives in this area recognizes Ozinga’s signature red and white striped Ready-Mix Concrete trucks,” their lawyer John C. Sciaccotta said in a statement. “Justin and Karl Ozinga’s father left an identical 15.34 percent of the family business to each of his six sons. Our clients filed this lawsuit in order to protect their legacy, their inheritance, and, ultimately, to protect the Ozinga family of companies.”

In addition to the company’s prominent position as a concrete supplier to major property developers, the family’s investment arm, Ozinga Ventures, has made several significant real estate investments. They include planning the controversial and still unstarted project known as “The Invert” on the Southeast Side that proposes to build a 6 million-square-foot storage facility deep underground a former steel mill site. The investment arm, headed by Aaron Ozinga, also lists investments in co-working company Workbox and Chicago-based multifamily firm Concord Capital.

“While we do not comment on family matters, we want to assure our coworkers, customers and communities that our operations remain unaffected and that our commitment to making a positive impact carries on,” a company spokesperson for Ozinga said in a statement. The spokesperson didn’t make Marty Ozinga IV available for an interview requested by The Real Deal.

The dispute centers on the Ozinga Children’s Investment Trust, established by the family’s late patriarch, Martin Ozinga III, who died in 2021 at age 71. To ensure his six sons remained equal, the elder Ozinga required a “Special Fiduciary Committee” to approve all trust investments through a unanimous vote, according to the suit.

Marty Ozinga IV has allegedly ignored this “ultimate protection,” the suit says. The plaintiffs claim Marty diverted roughly $30 million in Ozinga Bros. profit distributions away from the brothers’ individual trusts and into “Ozinga Stewards,” a family office entity Marty Ozinga allegedly uses as a personal war chest. The suit alleges he plans to use these “parked” funds to finance the $50 million acquisition of the competing concrete company, despite formal objections from Justin and Karl Ozinga.

The lawsuit reveals internal tension regarding the financial stability of the Ozinga enterprise, specifically highlighting debt-related concerns. Despite the large scale of the Ozinga enterprise — one of Illinois’ largest private family-owned companies — its principal lender, which isn’t named in the suit, requires a personal guarantee and a pledge of Ozinga Bros. stock from every individual owner, creating personal financial exposure for each brother, the suit says.

It also details massive cost overruns, with concerns escalating with the 2022 groundbreaking on an Ozinga grinding mill in East Chicago, Indiana, just over the state line from Chicago city limits. Originally budgeted at $65 million, the project’s total cost skyrocketed to over $150 million by the end of 2025 without formal board approval for the increased amount, the suit claims.

Last year, the company was allegedly forced to refinance its principal loan facility to avoid, or remedy, violations of loan covenants. According to the suit, his maneuver increased Ozinga Bros. cost of capital due to a higher interest rate and incurred about $300,000 in fees, despite the plaintiffs’ objections and the availability of cash reserves that could have addressed the crisis.

The financial strain was so heavy that Justin Ozinga proposed selling the core Midwest ready-mix concrete business — the family’s nearly 100-year-old legacy — as a means to eliminate the debt load, a suggestion Marty Ozinga IV reportedly characterized as a “coup” when he heard the idea had been discussed with other siblings, the suit says.

With a “drop dead” closing date for the new $50 million acquisition set for Feb. 28, the plaintiffs are asking the court to freeze the funds. If they fail, they warn the Ozinga empire will be forced into a transaction that “cannot be unwound,” forever altering the legacy of a Chicago business institution.