ESOP Owned Sonnax Sold to Warren Buffett

Sonnax Industries Inc, a maker of automatic transmission parts in Bellows Falls, was sold in early April to Marmon Holdings, Inc, a subsidiary of Warren Buffett's company, Berkshire Hathaway. Sonnax was an employee-owned company, whose ESOP was sued by the US Department of Labor, as first reported by VBM in January 2017. According to a press release and email, the new company will operate as Sonnax Transmission Company. Terms of the sale were not disclosed. The company will remain in Vermont.

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Studio Elias
A Tale of Two ESOPs

An employee stock ownership plan (ESOP) is a benefit program in which employees acquire ownership of the company they work for by receiving shares of stock in it, typically with the help of bank loans that fund the ESOP. When employees retire or leave for other reasons, the company buys back their shares at current value. Significant tax breaks make ESOPs attractive to owners looking for an exit strategy that will compensate them and enhance their employees' financial security at the same time.

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Three Solar Companies Form ESOPs

Three pioneers of the solar industry in the Bay Area are in different stages of transferring the businesses they created, but they are all traveling on a similar road. They are all transferring the ownership of their businesses to their employees.

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Studio Elias
Stewart's ESOP Creating Millionaires

Workers at Stewart's Shops are riding a rising company stock price that has created dozens of new millionaires heading for retirement, at least on paper. Stock for the privately held company, which employs more than 4,500 people, has boomed this decade, rising 66 percent between 2011 and 2016, according to annual reports filed with the U.S. Labor Department.

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Shutterfly Inc. Closes Transformational Acquisition of ESOP-Owned Lifetouch

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Shutterfly (NASDAQ: SFLY), the leading online retailer and manufacturer of high-quality personalized products and services, today announced it has closed its previously announced acquisition of Lifetouch, the national leader in school photography. The company financed the acquisition with the proceeds of an $825 million incremental term loan facility, which closed simultaneous with the acquisition.

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Q4:2017 Purchase Price Multiples Up 19% Year-Over-Year

Valuation multiples continued to surge in the fourth quarter of 2017, according to GF Data. Deal pricing pushed upward to an average mark of 8.1x EBITDA, a 19.3% increase over the year­ ago fourth quarter (6.8x) and a 7.0% jump from 3Q:17 (7.5x). The 8.1x mark is a 28.5% increase over the GF Data historical average multiple of 6.3x, which includes deals dating back to 2003.

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Hannibal Industries Appoints Chief Operations Officer

ESOP-owned Hannibal Industries, Inc. named Reed Reynolds as its chief operations officer (COO). Reynolds is a steel industry veteran that has more than 14 years of experience in sales and management positions. Reynolds' first day in this role will be March 12 and he will report directly to the president. Reynolds will be responsible to oversee the daily operation of the company while maintaining and establishing policies that promote the company culture and vision, especially concentrating on growth through efficiency and expansion.

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RMG Engineers Becomes 100% ESOP-Owned

Summit, NJ: The principals of Pilot Hill Advisors through its broker/dealer, Corporate Finance Securities, are pleased to announce that GeoStruct Engineers, Inc. has recently become 100% owned by its Emplyee Stock Ownership Plan.

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GT Distributors is Now 55% Employee-Owned

GT Distributors is pleased to announce that effective January 26th, 2018, 55% of the company's stock has been sold to its employee's retirement plan, through an Employee Stock Ownership Plan (ESOP). The Texas-based public safety equipment and uniform distributor's 100+ employees will become beneficial owners through the ESOP.

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