It's Little Wonder Employee Owners Worry Less

Despite a growing economy, millions of American continue to experience ongoing anxiety about their current and future economic well-being. Yet a new study indicates there is one group of workers who are feeling more financially secure and optimistic about their future than average workers: employees who work in private, employee-owned businesses.

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Studio Elias
Employee Ownership Linked to Better Wages, Wealth and Benefits

As the nation is in the midst of a rapid rethink of the fortunes of the middle class that is affecting both political parties, a new study suggest what kinds of companies might improve their wages and wealth. The study, Employee Ownership and Economic Well-being, shows that employee stock ownership is linked with better wages, wealth, and benefits for young workers as they move through their first two decades in the workforce. Have no doubt about it, these workers are at the frontline of capitalism where the failure of our economic system to build wealth for the middle class has to be sorted out or where even more severe disappointment will have to be admitted very soon with bad consequences for our society and economy at large.

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Independent Grocer Launches 43% ESOP

SANTA ROSA, Calif.--(BUSINESS WIRE)--Oliver's Market, Sonoma County's largest locally owned and independent grocer, announces the sale of 43% of the company to employees through an Employee Stock Ownership Plan (ESOP). The company also registered with the state of California as a Social Purpose Corporation, allowing leadership to consider employees, the environment, and the community in addition to financial position when considering any business decision.

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Ashland Completes $660MM Acquisition of Pharmachem Labs, an ESOP Company

COVINGTON, KY, May 17, 2017 - Ashland Global Holdings Inc. (NYSE: ASH) today announced that its subsidiary has completed the previously announced acquisition of privately owned Pharmachem Laboratories, Inc., a leading provider of quality ingredients to the global health and wellness industries and high-value differentiated products to fragrance and flavor houses. Under terms of the stock purchase agreement, Ashland paid $660 million in an all-cash transaction, funded from a combination of cash on hand and proceeds of a borrowing under its existing securitization facility, a new 3-year senior secured term loan A facility, a new 5-year senior secured term loan facility and a new 5-year senior secured revolving credit facility. The acquisition is expected to be accretive to Ashland's earnings per share in the first year following the close of the transaction.

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8th Circuit Affirms Flawed ESOP Not Tax Exempt

Washington, DC: An Eighth Circuit panel on Tuesday affirmed a Tax Court ruling that the Employee Stock Ownership Plan of an orthopedic surgeon's corporation — which employed only him and his wife — did not quality for a tax exemption because it failed to meet requirements.

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U.S. Employee Ownership Bank Act Introduced to the Senate

Sen. Sanders (for himself, Mrs. Gillibrand, Mr. Leahy and Ms. Hassan) introduced Senate Bill S.1082 which, if enacted, would provide the establishment of the United States Employee Ownership Bank ("Bank") for the purpose of providing loan guarantees, direct loans and technical assistance to companies seeking to sponsor Employee Stock Ownership Plans or worker-owned cooperatives. The bill proposes initial capitalization of $500 million which capital would be available for feasibility analyses and stock transactions that create or expand ESOP ownership to 51% or more. An additional precondition before the Bank makes any subordinated loan or guaranty requires the board be elected on a 1 share to 1 vote, except those votes may be cast via direction to the ESOP trustee.

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