Verit Advisors, a Chicago-based investment banking firm, was engaged by Valdese Weavers to provide expertise in structuring a 100% Employee Stock Ownership Plan (ESOP) transaction that balanced and optimized the Company’s and stakeholders’ objectives.  Valdese’s existing ESOP had owned a minority interest stake in the company since 1996, when the ESOP was first established by members of the Shuford family, who held a controlling ownership position in the company at the time.  The Shuford family recently sold its remaining stock holdings to the ESOP as part of the 100% ESOP transaction.

“Valdese Weavers has recently celebrated its 100 year anniversary in the weaving industry and it seemed an appropriate time to transition ownership to the employees for hopefully the next 100 years and beyond” stated Snyder Garrison, Chief Financial Officer of Valdese, and on behalf of the Shuford family.  “The 100% ESOP ownership structure achieves our family’s objectives for Valdese Weavers to remain an independent, privately owned company with a strong commitment to our local community.”

“The Verit team was honored to assist Valdese with the structuring and implementation of the 100% ESOP ownership transaction, especially given the company’s rich history, legacy and commitment to the Hickory, NC community” states Peter Abrahamson, Managing Director at Verit.  “A significant amount of time, effort and care went into the transaction design and structure, balancing the interests of all stakeholders involved with a goal to implement a successful, long-term employee ownership structure.”

Verit also assisted the Company with raising senior debt financing for the transaction which was comprised of a term loan and revolving credit facility with a new lender.  John Solimine, Verit Principal and head of Debt Capital Markets, comments “We were pleased to assist with securing an attractive new credit facility that supports the Company and overall transaction structure.”

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, mergers and acquisitions, and valuation services. Integrity, teamwork, service, and innovation are at the heart of the organization, as Verit 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 and her team are considered to be one of the foremost experts in ESOP transactions and middle market strategic alternatives. Verit has offices in Chicago, Minneapolis and Los Angeles.

About Valdese Weavers

Valdese Weavers is both a creative design studio and a state of the art manufacturer of jacquard textiles located in the Blue Ridge Mountains of North Carolina. Residential furniture manufacturers and distributors, Contract OEM and distributors and specialty markets all rely on Valdese Weavers for fashion forward and superior quality fabrics. Trading under six distinct brands; Valdese Weavers, Valdese Weavers Contract, Circa 1801, Home Fabrics, Dicey Fabrics and Valdese International Products (V.I.P.), has an active back log of over 200,000 patterns used in products worldwide. Their vertical manufacturing structure allows mass customization like none other in our industry.  Valdese Weavers operates four facilities located in Burke County, NC and employee approximately 900 associates.