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 Fluid Transfer Specialists® at NewAge Industries, Inc., 145 James Way, Southampton, PA 18966; phone 800-506-3924 or 215-526-2300; fax 800-837-1856 or 215-526-2190; e-mail: email@example.com.
About NewAge® Industries
In business since 1954, NewAge Industries manufactures and fabricates thermoplastic and thermoset tubing and hose. 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. NewAge Industries maintains an inventory of over ten million feet of tubing and hose and prides itself on same-day shipment of 98% of orders for its core product lines. In 2006, NewAge initiated an ESOP (Employee Stock Ownership Plan) for the benefit of both its employees and customers.
The AdvantaPure® division of NewAge Industries is ISO 9001:2008 certified and specializes in high purity tubing, hose, single use process manifolds and systems, and other molded components for the pharmaceutical, biomedical, food, beverage, and chemical industries. All products are manufactured, stored, and shipped using the cleanest methods possible to ensure unsurpassed product purity. Automated product identification systems, including gamma stable RFID tags and labels, are offered by NewAge's Verigenics® division.