Central States Manufacturing Completes 100% Employee-owned Transaction
Central States Manufacturing, Inc. announces the sale of the company to an Employee Stock Ownership Plan (ESOP). Verit Advisors, a Chicago-based investment banking firm, advised Central States on the transaction.
Verit Advisors LLC began working with Central States in May of 2011. Rick Carpenter, Central States’ CEO and majority shareholder, was evaluating ownership transition alternatives which would maximize value for his ownership position as well as the existing ESOP minority interest ownership position while also providing strong equity incentives for the Central States employees and management team.
The Verit Advisors team analyzed and benchmarked numerous ownership transaction structures for Central States based on the Verit teams’ extensive experience with ownership transition transactions. “The Verit team’s experience and expertise was invaluable in helping me evaluate transaction alternatives for Central States Manufacturing and myself” commented Rick Carpenter. He added, “They really listened to us and our stakeholders, designing an ESOP transaction structure which addressed our goals and objectives, proving to us that a 100% ESOP ownership structure was a great course of action for our situation”
“In addition to providing a graceful and non disruptive ownership transition, the ESOP ownership structure created valuable tax savings, employee benefits and financial flexibility” said Mary Josephs, Founder and Executive Managing Director of Verit Advisors. “It’s an honor for us to be part of this legacy and have the opportunity to shape the future of such a successful company. We worked hand-in-hand with Rick, the board of directors, the Central States’ executive management team, accountants, attorneys, and bankers to create the elegant transition plan that paid tribute to the company’s history as well as the employees who represent its future.”
About Central States Manufacturing, Inc.
Founded by Carl and Rick Carpenter in 1988, Central States Manufacturing is an industry leader in the manufacture and distribution of metal building products. Central States Manufacturing operates in three main segments: post frame (agriculture, hobby building), commercial (banks, strip malls, etc.), and residential (home construction). Central States has managed to build and maintain customer loyalty through their unique and focused attention to customer service, Right on Time Every Time is a key corporate value. They have five manufacturing plants located in Lowell, AR, Michigan City, IN, Cedar Hill, TX, Jasper, AL and Mount Airy, NC with plans for significant expansion over the next several years.
About Verit Advisors
Verit Advisors unites sophisticated middle-market investment banking capabilities with a client-centric boutique, fluent in ESOPs, debt and equity capital markets, and mergers and acquisitions. Integrity, teamwork, service and innovation are at the heart of the organization, as the Verit Team strives to provide unparalleled advice and custom solutions to its clients. Mary Josephs founded Verit Advisors in 2009 and has nearly three decades of experience in the world of corporate finance. Josephs is considered to be one of the foremost experts in ESOP transactions and middle market strategic alternatives.