NCC Automated Systems, an integrator and manufacturer in the food packaging, and ophthalmic automation industries, announced that the company has formed an ESOP (Employee Stock Ownership Plan).
In the transaction, ownership sold a significant interest to a newly created Employee Stock Ownership Trust, allowing current and future employees to gain a beneficial ownership interest in the Company without any personal cash investment.
Effectively, the ESOP is a qualified retirement plan which, based on company performance, could generate significant retirement benefits for NCC's approximately 65 Employee Owners.
Commenting on the announcement, Kevin Mauger, President and former 'sole owner' of NCC, said, "Our company is built on the positive culture and energy of our team creating an environment that supports a positive Customer Experience with the speed and agility required to compete in today's market.
The ESOP will give our employees a financial interest in the continued growth and success of the business, creating even more of a team effort and vested interest in supporting our customers than we have today. It represents a very tangible way to reward those who have played a critical role in NCC's success.
Delivering an unparalleled positive experience requires great employees who are focused and dedicated to the business at hand. That clearly describes our team, and we are thrilled to be able to provide this benefit to them. We want them to stay around forever and be rewarded accordingly for their efforts. We are not looking to be just another company, we have far greater goals and aspirations. We are reaching for the stars."
Mauger, who will continue in his current position for the foreseeable future, also noted: "In light of the challenges facing American workers, an ESOP is an excellent way in which to assure the continuation of our world-class team of valued employees, and enhance our company's productivity and profitability. We expect the ESOP to increase the retirement security of our Employee Owners, particularly if we continue on the growth path we have enjoyed the last several years."
Jim Steiker, Chairman and CEO of SES Advisors and with more than 30 years of experience accomplishing ESOP transactions, said: "ESOP's done well and for the right reasons, allow business owners both to do well and can be both an altruistic and humanitarian approach to a collective win-win business environment.
“Employee ownership can add an exclamation point to an already strong business and create an even more engaged culture. Employees potentially have strong financial rewards when they retire in exchange for their hard work and dedication throughout their careers.
“An ESOP appears to be a perfect fit for NCC and should result in extremely positive results for all involved. I was extremely impressed with Kevin from our first meeting–he is a poster child for the kind of servant leader that creates a great employee-owned company. He believes in his people and the team approach and using the ESOP to make a great company even better."
NCC Automated Systems is a 31-year-old integrator and manufacturer. Our main industries for integration are food packaging and ophthalmic lens production where NCC offers turnkey integration services from concept through training and aftermarket services.
NCC has a 50,000 ft2 facility focused on conveyor manufacturing and assembly, control panel building, assembly, wiring and testing services.