Phone: 1-888-755-4370 (toll free US only)
Phone: 1-215-526-2151 (worldwide)
July 06, 2016 — For Immediate Release
Forty-Nine Percent of NewAge® Industries is Now Owned By Its Employees
Recent Ownership Transfer Increases Employee Ownership by Nine Percent
Southampton, PA — At a recent company-wide meeting, NewAge Industries’ CEO Ken Baker announced that he would transfer an additional nine percent of the value of the company to its ESOP (Employee Stock Ownership Plan). The announcement was met with great applause, because employees of the tubing manufacturer know that it means more company shares in their pockets come retirement.
"We underwent an initial evaluation over ten years ago to determine the value of the company’s stock," said Baker, "and I sold thirty percent to the ESOP. I sold another ten percent in 2013, and now, with this additional nine percent, it brings the total ESOP ownership to forty-nine percent. I’m very pleased to be able to give back to our team members and their families in this way."
The transfer took place June 30, 2016.
Baker noted that the value of the shares are given to employees after retirement and are at no cost to employees.
"The shares are bought by the ESOP through an internal company loan. Employees receive an annual statement showing how many shares he or she owns and the current value of those shares. When a team member retires, the ESOP buys back that team member’s shares, and the team member gets a nice sum of money for retirement," stated Baker.
So why an ESOP? Why not just sell to a competitor?
"My father started the company, and I watched him grow it into a successful corporation. I’ve been here thirty years, and I didn’t want to see a competitive buyout and then watch all that hard work be broken apart or assimilated. It’s important to me to see our dedicated team members – especially the long term people – rewarded for all their hard work," Baker said.
Baker observed that the importance of the ESOP is illustrated in a number of ways. It’s a succession plan that keeps everyone employed, and it gives employees the pride of ownership. Having the ESOP in place also improves morale and camaraderie and benefits customers because team members understand that their everyday actions affect their retirement benefits.
"The company’s future is quite bright," noted Baker, "and shifting another percentage of it to the ESOP is exciting. We’re all looking forward to making NewAge even more successful."
For more information on NewAge’s ESOP, contact the AdvantaPure team at 145 James Way, Southampton, PA 18966; phone 888-755-4370 or 215-526-2151; fax 888-258-4293 or 215-526-2167; e-mail: email@example.com.
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About AdvantaPure and NewAge Industries
AdvantaPure, a division of NewAge Industries, specializes in clean products for the pharmaceutical, biomedical, food, beverage, chemical, and cosmetic industries. All products are manufactured, stored, and shipped using the cleanest methods possible to ensure unsurpassed product purity.
In business since 1954, NewAge Industries is a manufacturer and fabricator of thermoplastic and thermoset tubing and hose, and a supplier of fittings and clamps. The company offers one of the broadest product lines of tubing, hose, and fittings in the U.S., and its custom extrusion and fabrication services are unrivaled. In 2006, NewAge Industries initiated an ESOP (Employee Stock Ownership Plan) for the benefit of both its employees and customers.