Bandit Industry’s transition from family-to-employee ownership is complete. The highly anticipated move was completed Nov. 1, according to a press release from the company. It came after two previous attempts at ownership change failed.
Over the course of the summer, ownership of the company was transitioned into an Employee Stock Option Plan. While that means that the company’s owners are different, the structure of day-to-day management remains the same. In fact, the company’s former owner said that the move offers a new performance incentive. “It’s going to be a great opportunity for all of our employees,” Jerry Morey said in a press release. “They’ll all have a share in the business, with a lot of incentive to continue to add to what we’ve already built. Bandit’s employees will continue to make this company even stronger.”
The company currently employs approximately 450 people. An ESOP is a employee-ownership model in which a trust fund is set up for employees into which the company makes contributions, according to the website for The ESOP Association. It carries some tax advantages that make it an immediately attractive option for new ownership.
The details of Bandit’s specific ESOP structure were not immediately available at press time. Bandit’s new ownership comes at a time of rapid expansion for the company. It is reporting annual growth of approximately 20 percent and with two plant expansions underway, according to a Bandit press release earlier this year. The company also recently entered into an agreement with a German manufacturer of slow-speed shredding equipment that will allow it to sell its products overseas.