Employees of Kennett Square’s Tri-M Group Have ‘Piece of the Pie’ as Company Reveals ESOP in Memorable Fashion

It’s one thing for companies to say they put their employees first. It’s another thing altogether for them to actually do it.

There’s no shortage of businesses that decorate their website and other promotional materials with clichés about how they value their employees. However, businesses that demonstrate their appreciation through action, and not just words, are often in short supply.

The Tri-M Group — based in Kennett Square with additional offices in Lock Haven, Quakertown, Middletown, Del., and Baltimore — has been a trusted provider of electrical and facility solutions for more than a half-century. It specializes in the design, installation, and service of electrical construction, building automation systems, data and telecommunications networks, security, and energy analytics.

And Tri-M is an awesome place to work.

CEO Jim Horn and Executive Vice Presidents Chris Peirson and Ron Bauguess — Tri-M’s three owners whose combined tenures at the company span more than a century — showed why last week. Not just by transitioning Tri-M to 100 percent employee ownership through a new Employee Stock Ownership Plan (ESOP), but how they did it.

Creating the Right Culture

Founded in 1964 by brothers Tom and Dick Musser, the Tri-M Group has grown from a small industrial and commercial electrical contractor to one of the region’s largest merit shop contractors. Through the decades, Tom, who bought out his brother early on, recognized the growing and changing services needed by the company’s customers and, therefore, diversified its offerings. And he understood that a highly trained, skilled, and compensated workforce was the best way to serve Tri-M’s customers.

Tom believed that businesses have the responsibility to give back to their communities, and his actions reflect that belief. He helped to improve the lives of countless local families by supporting many charities, leading capital campaigns, and serving on the board of a number of service and civic organizations.

In the late 1990s, after 34 years of expanding his company and achieving his goals, Tom sold Tri-M to Encompass Services, Inc. He didn’t like the new culture the parent company was creating, though, and within a few years, he took the lead in buying Tri-M back.

“Tom was a true leader, and he led by example,” said Horn, who joined Tri-M in 1983 as an electrical designer. “He was a man of integrity and honesty and believed in the value of hard work. He made it a point to learn an employee’s name and family. He welcomed anyone into his office if they had a question or concern. He would work alongside of you, and there was not one job that he considered beneath him.”

In 2002, Horn, who rose through the ranks by demonstrating a management and leadership style that enabled employees to flourish and exceeded the expectations of customers, joined Musser as joint owners of the company. By 2016, when Musser died at the age of 81, Peirson and Bauguess had become owners as well. (The latter had joined Tri-M in 1993 and the former in 1988.)

To ensure Tri-M’s future, the three owners soon wanted a succession plan that would preserve Tri-M’s culture, retain its sustainability as an independent company, and carry on Tom’s legacy.

“Before Tom died, I told him that Tri-M would be in good hands,” said Horn. “Our company’s success can be attributed to the passion, commitment, and innovation our team brings each and every day. We were looking for a way to reward the loyalty of our team and provide for their future.”

Succession Plan

The ESOP was the perfect path to take. Horn, Peirson, and Bauguess wanted to announce Tri-M’s new ownership structure in a special way, so they rented Presidential Caterers, a wedding and event venue in Norristown, and bussed in workers from the company’s satellite offices. All 480 staff members were in one space, and their hearts were about to skip a beat.

Rumors had been flying, and the gathered employees were fearful that the owners were going to reveal that they were selling the family-oriented company.

All three owners gave speeches about their personal history with Tri-M and how it afforded them opportunities for growth.

Horn then announced, “We have sold Tri-M and would like you to meet the new owners.”

He motioned toward the room’s doors. Everyone quickly looked around to see who might be arriving.

When no one did, Horn, Peirson, and Bauguess told them to open the envelopes under their chairs. They each contained a small mirror.

“Now, look in the mirrors,” they said, “and meet the new owners of Tri-M.”

“Stand up and shake your owners’ hands,” Bauguess exclaimed as the employees rose and exchanged excited handshakes with one another. “Now, you all have a piece of the pie!”

Waiting for everyone were 480 slices of apple, cherry, and pecan pie to celebrate the sweet moment.

“Tom used to say, ‘Always be thankful, but never be satisfied,’” said Peirson. “We are very thankful for our staff, and this was our way of showing that.”

In the days ahead, advisors will be meeting with Tri-M employees in large groups to further explain the ESOP and field any questions they might have.

“This is an extremely important moment in our company’s history,” said Bauguess. “We’ve always placed our employees first, and this transition will be a natural progression for us. The ESOP demonstrates our commitment to our team and allows them to take part in our future success.”

There are no planned changes to Tri-M’s management structure or day-to-day operations. For Tri-M’s 480 employees, business continues as usual.

Now, though, they have a nice piece of pie to go with it.

As seen in the Vista.Today and written by Mark Hostutler.