Little Chute, WI (Sept. 10, 2015) – Elipticon Wood Products, Inc., a manufacturer of custom curved and straight millwork for residential and commercial customers, announced today that it has transferred 100% ownership of the company to its employees via an Employee Stock Ownership Plan (ESOP).
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. Doug Gilbert, President and CEO of Elipticon, and John Wiley, the company’s owner, finalized the sale in August 2015.
According to Gilbert, “the employees have been instrumental in the long-term success of the company and we are very pleased that we can recognize their efforts, loyalty, and dedication by providing this ownership opportunity. The ESOP will provide stability, enhance the potential for growth, and provide a significant retirement benefit for those whose contributions have been so critical to the company’s history of success. We look forward to continuing to be a positive presence in the Little Chute community for years to come,” said Gilbert.
“We chose to take advantage of this type of sale because ESOPs have shown to better position companies for long-term growth,” said Wiley. “This places the company in a position to further thrive in the future so that jobs are secure and customers continue to receive the great quality products they’ve come to expect. Over the years the employees have worked hard to improve our processes, customer focus, and quality. They have earned the right to benefit financially. I am pleased with this opportunity for them to continue to grow and prosper.”
According to The Employee Ownership Foundation’s 23rd Annual ESOP Economic Performance Survey, the majority of ESOP companies showed increases in productivity, revenue, stock value, and profitability, all of which benefit employees.
ESOP Partners, an ESOP consulting and administration firm in Appleton, WI, assisted with the sale and will continue to work with the company as the ESOP’s third party administrator.
About Elipticon Wood Products, Inc.
Based in Little Chute, Wisconsin, Elipticon is a quality, dealer-networked manufacturer of custom straight and curved millwork distributed throughout the Midwest. The company’s moldings and casings enhance the value and natural beauty of its end customers' homes and businesses. With tooling for more than 4,500 millwork profiles, Elipticon provides beautiful architectural millwork that matches the wood species and profiles of homes and businesses. It accomplishes this by combining the use of state-of-the-art technologies, machinery, and custom craftsmanship.
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).