● Midwest grocery chain Balls Food Stores has formed an ESOP as of this July. Founded in 1932 by Sidney and Molly Ball, the chain is now helmed by their grandson David Ball. According to a company statement, the transition to the ESOP will build on the chain’s “legacy of creating a teammate-centric culture.”
“My grandfather and father taught me that if you take care of your teammates, the teammate will then take care of the customer, and the customer will take care of the business,” said David Ball. “By making our teammates owners, we’re preserving the company’s culture and values—while creating a sustainable growth strategy for Balls Food Stores,” Ball said. “Most importantly, we believe this will be a game-changer for everyone who works at BFS, something that will impact them for generations to come.”
● KRB Machinery, a leading manufacturer of machine-building solutions in Wrightsville, Pennsylvania, has transitioned to an ESOP after years of consideration. Established in 1986, the company employs approximately 120 people and hopes to preserve its culture and community through the ESOP model.
“Our exploration into employee ownership began years ago, spurred by our board chairman, who had experience with other ESOPs, and recognized its potential for our company,” said Nathan Kauffman, president and CEO of KRB Machinery. “We have a strong culture and we wanted to leave a legacy. Our employees are what made us successful.”
● 66-year-old New York construction company Rifenburg Holdings is now 100% employee-owned through an ESOP. By establishing the ESOP, the company aims to give back to its longtime employees who have contributed to its achievements.
“The Rifenburg family recognizes that it’s our loyal employees that made these companies successful over the past 66 years. We decided the best way to transition the organization to the future was to allow them to share in that success. We are very excited about this opportunity and we are confident that it will help attract new people to our team,” the company said in its statement.
● Established in 1979 in Westford, Vermont, Land Rover parts dealer Rovers North is now ESOP-owned. When company founders Mark and Andrea Letorney began succession planning over a decade ago, they weren’t enthused about the options until discovering employee stock ownership plans—in particular, they feared that selling to an outside buyer would result in the Vermont facility closing and consolidating, putting their loyal employees out of work.
“We always thought our people were our greatest asset,” said Calef Letorney, CEO of Rovers North and son of Mark and Andrea. “These team members are equally responsible for our success. So personally, it didn’t feel right for only the family to keep the business profits forever into the future. Rather than do the normal thing of giving or selling to a child, I’m excited that we sold the family business to an ESOP trust so my parents get compensated for selling the business they built and future profits fund employee retirement accounts. I don’t lose out either because I’m continuing as an employee-owner.”
● Paragus IT, a Massachusetts-based tech support company for small businesses, has completed its eight-year transition to 100% employee ownership. With origins dating back to 2003, when company founder and CEO Delcie Bean was a high school student helping individuals set up computers in their own homes, the company eventually switched to assisting businesses and adopted the name Paragus. According to Bean, one of his main reasons for adopting an employee ownership model was his philosophical belief in a more equitable way of running a company.
“I’ve always been discouraged by the significant growing disparity between the 1% and everybody else,” Bean said. “That’s not really reflective of what I see in most company cultures, where people are all working really hard, and I feel like [they] should be able to benefit in a more significant way.” Bean believes the ESOP model will help the company do just that.