Verit Advisors Completes a 100% ESOP Transaction For Hypertherm
Verit Advisors, a Chicago-based investment banking firm, was engaged on behalf of Hypertherm Inc. to provide a comprehensive strategic alternatives analysis and support the execution of a 100% ESOP transaction.
Verit provided significant financial advisory expertise in a wide range of areas including ESOP structuring, sustainability, and debt capital markets.
Verit Advisors Vice President Rob Ruszkowski commented that “Verit is very proud to have worked so closely with the visionary founding shareholder family and outstanding management team in structuring a transaction that optimizes value for all stakeholders, particularly the Hypertherm associate owners.” “We were able to collaborate closely with Hypertherm to secure attractive debt financing that will continue to support the company’s established long-term strategy,” added John Solimine, Verit’s Principal.
In 2001, Dick and Barbara Couch, the controlling shareholders, created the Hypertherm Associate Stock Ownership Plan, which held approximately one-third of the company’s stock in a partial ESOP structure. In 2004, the company also created a Global Stock Value Program for international associates. This transaction completes the founders’ vision of 100% associate ownership.
“We have witnessed the amazing power of associate ownership since we launched the initial Stock Ownership Plan and the Global Stock Value Program,” said Barbara Couch, Hypertherm’s Vice President of Corporate Social Responsibility. “We are delighted to transition ownership to our associates, who are best positioned to ensure that Hypertherm builds upon our strong culture, passion for technology, customer service, and commitment to our communities.”
“Throughout the engagement, the team at Verit was quite helpful in evaluating multiple alternatives and weighing their pros and cons,” commented Carey Chen, Hypertherm’s Vice President and General Manager of Light Industrial Businesses. “In addition, the team was able to address our numerous analytical requests with impressive response times.”
Hypertherm is a U.S. based manufacturer of plasma, laser, and waterjet cutting systems based in Hanover, New Hampshire. Hypertherm’s reputation for cutting innovation dates back more than 45 years, to 1968, with Hypertherm’s invention of water injection plasma cutting. The associated owned company, consistently named one of the best places to work in America, has more than 1,300 associates along with operations and partner representation worldwide.
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 in Chicago and has nearly three decades of experience in the world of corporate finance. Josephs and her team are considered to be the foremost experts in ESOP transactions and middle market strategic alternatives.