Appleton, Wis. (January 8, 2014) – ESOP Partners, an ESOP consulting and administration firm, has announced the successful completion of a partial sale of Badger Corrugating Company, a La Crosse, Wis.-based full-line building materials distributor, to its employees via an Employee Stock Ownership Plan (ESOP) representing the Badger’s employees.
An ESOP is a qualified retirement plan that buys, holds and sells company stock for the benefit of the employees, providing them with an ownership stake in the company.
Badger Corrugating CEO Mike Sexauer, a fourth-generation company owner, initiated the partial sale in December with the assistance of ESOP Partners.
Founded in 1903, Badger Corrugating has been led by the Sexauer family since its inception. Over the past 100 years, the company has evolved into a full-line distributor of lumber, interior millwork, exterior millwork, cabinets, fireplaces roofing and agricultural products. Sexauer will remain with Badger Corrugating in his role as CEO.
Sexauer said the sale is a way to reward employees for their contributions to the company’s history of success and to ensure its long-term vitality. “We’re thrilled to be able to share the success we’ve had in a very tangible way with our employees. They’re passionate about delivering quality, and they’ve been critical in building the reputation we have. They now have a more formal stake in our continued success,” Sexauer said.
Badger Corrugating’s announcement to employees was made on December 18, 2013 and was very well-received, according to Sexauer.
Aaron Juckett, ESOP Partners President, said Badger Corrugating leveraged ESOP Partners’ full range of capabilities in the sale. “We worked with Badger’s owners to plan, structure and execute the sale. Our proprietary process made the transition extremely efficient while ensuring maximum cash and tax benefits,” he said. Juckett added that ESOP Partners will continue to work with Badger Corrugating as an ESOP consultant and third party administrator.
About Badger Corrugating Company
Badger Corrugating Company is a fourth-generation family-owned and -operated business. Founded in 1903 as a fabricator of metal products, over the past 100 years the company has evolved into a full-line distributor of lumber, interior millwork, exterior millwork, cabinets, fireplaces, roofing and agricultural products.
About ESOP Partners
ESOP Partners is an ESOP consulting and administration firm that provides a single ESOP expert as a point of contact throughout the lifecycle of the ESOP. The Company works with business owners and companies considering an ESOP to provide ESOP feasibility, plan design, and full ESOP implementation services. ESOP Partners also provides support for ongoing ESOP companies, including ESOP TPA services, distribution and repurchase obligation planning, and consulting services covering corporate governance, ESOP culture, employee communications, and second stage transactions.
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 60-90 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 the maintenance of a company’s legacy in the community. According to the ESOP Association there are approximately 10,000 ESOPs in place in the U.S., covering 10.3 million employees (10 percent of the private sector workforce).
This press release was originally published on ESOP Partners' PitchEngine Account.
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