Sprinklermatic Fire Protection Systems, Inc. Transitions to ESOP
Sprinklermatic is proud to announce they are now a 100% employee-owned company. This announcement of the sale to the Employee Stock Ownership Plan & Trust (ESOP) was made to Sprinklermatic employees at a special meeting held at the company’s headquarters in Davie, Florida. “The transition to ESOP seemed like a natural fit for Sprinklermatic and I’m very happy that this has finally become a reality, I believe that becoming a 100% employee-owned company is a move that my father, Gene Collier who started this business would have wholeheartedly supported.” said Robin Collier
“Both Robin and I agree this is by far our greatest professional accomplishment and an amazing way to create working man’s wealth.”
Timothy J. O’Brien added “As a leader in the Fire Protection industry, our hard-working, dedicated employees are the lifeblood of Sprinklermatic. Transitioning to an ESOP allows us to reward our employees for their dedication and commitment, many of whom have been with the company for more than 10 years. I believe it creates a more sustainable business model, here in South Florida, for our employees and our clients. We expect that providing ownership to employees will lead to greater employee satisfaction, reduced turnover, and a more rewarding work experience. As a 100% employee-owned company, we are able to create a more meaningful companywide culture of employee empowerment and responsibility.”
“We want our team members to act and think like owners and directly benefit from Sprinklermatic’s continued success as participants in the ESOP”.
What Is An ESOP?
An ESOP is an employee benefit plan, facilitated through a trust, which provides company stock to employees as part of their retirement benefits. Congress created these plans to make it possible to transfer ownership to employees in a tax-favored way. The plan, which allows employees to earn stock in the firm, is designed as a long-term retirement benefit for all employees as owners. There are close to 7,000 ESOPs in the U.S. with about 14 million participants. As a 100% ESOP owned company, all of Sprinklermatic stock is now held in trust by the ESOP exclusively for the benefit of Sprinklermatic employees.
Source: www.nceo.org
ESOP By The Numbers
According to the nonprofit National Center for Employee Ownership (NCEO), extensive research has shown that employee ownership companies outperform non-employee ownership companies by a wide margin. They have been found to grow about 2.5% per year faster in sales, employment, and productivity than would otherwise have been expected, provide 2.2 times the total retirement assets as non-ESOP companies, and provide dramatically greater job stability.
Source: www.nceo.org
Press Release
