Hallmark Building Supplies Completes Sale to Employee Stock Ownership Plan (ESOP)

Posted by Melanie Matulonis on Wed, Feb 17, 2021
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Logo_Hallmark Building SuppliesHallmark Building Supplies, Inc. has announced the successful transfer of 100% ownership of the company to its employees via an Employee Stock Ownership Plan (ESOP).

Joe Balthazor, President, CEO and Founder continues to lead the company and remains active as President and CEO after the transaction.

Balthazor says, “After weighing the options, my wife and I decided the best thing to do was to take the company to 100% employee ownership versus selling to a 3rd party. This allows us to maintain our culture, keep our leadership team in place and provide an opportunity for our new fellow associate owners to accumulate personal wealth.”

“We have always had a strong commitment to growth,” says Katie Sadorf, VP Marketing & Strategy.

“Becoming 100% employee owned adds new meaning to that strategy. Our leadership team understands how growth can benefit all stakeholders in the company, including our suppliers and customers, and now our fellow owners.”

Hallmark has expanded over the last 10 years into geographies in the Western and Southern United States.
Recently, the Exterior Business Unit added decking products and are in the process of adding a new
fencing/cladding/decking product in Levanté® Aluminum Architectural Components. This year, their Interiors Business Unit is adding new DuPont Corian® Endura™: a premium porcelain surfacing material.

“Adding new products, expanding into new geographies and making acquisitions facilitate growth, but so does organic growth,” says Balthazor. “We also look to provide unique solutions to our customers’ needs.
Sometimes, that may be as simple as delivering on a different day to help a customer and other times it is as
complex as helping customers choose the right materials for their application, or creating a marketing plan to
help grow their business.” 

About Hallmark Building Supplies

Hallmark Building Supplies is a wholesale distributor of branded building materials that performs sales,
marketing, and physical distribution functions for residential and commercial markets in 20 states. The
company was founded in 1974.

About ESOP Partners

ESOP Partners, who assisted with the transaction, is an ESOP service provider that changes lives by creating wealth and sustainable employment through employee ownership and works with business owners and companies to determine if an ESOP is a good fit for their situation. ESOP Partners establishes, maintains, and sustains employee stock ownership plans (ESOPs) throughout the lifecycle to maximize the benefits of being an ESOP company and provide employees with an ownership stake in the company that they work for.

 About ESOPs

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 the maintenance of 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. 

Read the press release here.

Topics: ESOP Partners News, ESOP Transactions

Melanie Matulonis
Written by Melanie Matulonis

Melanie Matulonis is the Marketing Team Leader with ESOP Partners. She is responsible for supporting the company’s strategic goals and mission of "changing lives through employee ownership" through the development and execution of internal and external marketing communications programs and campaigns.