One Large ESOP Closes; Another Starts

Employees have completed a $810 million transaction to purchase Appleton Papers from the French holding company Worms. The Appleton, WI company is the world's largest supplier of thermal and self-copying paper. $107 million of the transaction came from employees moving 401(k) and profit sharing plan assets into the new ESOP that was used to buy the company. Employees will own 100% of the company, which employs 2,600 people.

Another majority employee-owned company, Foster & Gallagher has closed, however. In 1998, it had over $500 million in revenue from the operation of its horticultural and gift catalogues. Over 3,000 employees worked for the company. The company had prospered by offering sweepstakes contests to induce new customers. When new rules and bad publicity caused a loss of interest in the contests, the new customers started disappearing.