Hercules Industries Becomes Employee Owned
ESOP is effective October 1
DENVER — Hercules Industries announced that effective October 1st, it will become an employee-owned company. The existing shareholder group is planning on transferring 100 percent of Hercules shares to an Employee Stock Ownership Plan (ESOP).
"For the past two decades Hercules has grown to over 20 locations and five manufacturing facilities through hard work and investments back into the business," said William Newland, shareholder and chairman of the Board of Directors. "Transferring ownership of this large capital structure to the next generation is very difficult. When searching for answers on transferring the ownership, through divine guidance, the answer came to us through financial planners and advisors. The conclusion we came to was that we should simply transfer company ownership to those people that deserve it the most. These are the people that have built the business through all these years, the people that have been most loyal to you, the employees of Hercules Industries."
"There were many different options we could have used to transfer the ownership of Hercules Industries, but many of them were simply not right for us," stated Paul Newland, shareholder and president of Sales and Marketing, "We have worked hard over the years to create a family culture that values our employees and customer relationships and moving forward we felt the ESOP was the best solution to preserve what we have created. I have great confidence in the management team we have in place, including both next-generation Newland family and other leaders. They will continue to grow the company and lead us well into the middle of this century with the same values and family culture we have today."
The surprise announcement of the ESOP was made to Hercules Industries employees at a special mid-year meeting on the morning of September 13th.
"This is a great day for the future of Hercules and all of the employees who have been instrumental in our success." said Andy Newland, CEO, Hercules. "The ESOP structure provides a way for the shareholders to effectively transfer ownership of the company in a way that will allow us to continue to operate the company in a manner consistent with our core principles and values. I am thrilled to embark upon this next chapter of our company's rich history with my fellow employee owners."
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