Milwaukee's Bliffert Completes Partial ESOP

MILWAUKEE — After more than 115 years in business, Bliffert Lumber & Hardware has announced the partial sale of the company to its employees via an Employee Stock Ownership Plan (ESOP) representing the Bliffert employees.

In an announcement made on April 10, company Vice President Eli Bliffert outlined how important it was for the Bliffert employees, who helped grow a robust and prosperous company, to share in its ownership into the future.

“The sale is a way to reward employees for their contributions to Bliffert Lumber & Hardware’s success and to ensure its long-term vitality,” Bliffert said. “I am a firm believer that we are all in it together. The ESOP is the best way to ensure this.”

Employee Stock Ownership Plans (ESOPs) are qualified retirement plans that buy, hold, and sell company stock for the benefit of the employees, providing an ownership stake in the company. ESOPs are the only retirement plan allowed to borrow money to purchase stock and are generally funded only by the company. Selling part or all of a business to an ESOP enables a business owner to sell to a built-in buyer in as little as 90 days at full fair market value. There are many significant tax and cash flow benefits of selling to an ESOP. An ESOP also allows for a better-managed ownership transition, preservation of local jobs, and maintaining a company’s legacy in the community. According to the National Center for Employee Ownership (NCEO), there are approximately 10,000 ESOPs in place in the U.S., covering 10.3 million employees. There are less than 2,500 ESOP companies that are 100% owned by their employees.