Madison, WI (Nov. 10, 2015) – Mounds Pet Food Warehouse, an independent pet food operation with five south central Wisconsin locations, announced today that it has transferred 100% ownership of the company to its employees via an Employee Stock Ownership Plan (ESOP).
An ESOP is a qualified retirement plan that buys, holds, and sells company stock for the benefit of the employees, providing them with an ownership stake in the company. Tim Walton, owner and president of Mounds Pet Food Warehouse, finalized the sale in October 2015.
“This is a new, exciting phase for Mounds,” said Walton. “I’m pleased to recognize the dedication of the company’s associates with this ownership opportunity. It will help cultivate long-term service, promote company pride, and providing a greater stake in securing the company’s presence in the local communities the company serves so well.”
According to The Employee Ownership Foundation’s 24th Annual ESOP Economic Performance Survey, the majority of ESOP companies showed increases in productivity, revenue, stock value, and profitability, all of which benefit employees.
ESOP Partners, an ESOP consulting and administration firm in Appleton, WI, assisted with the sale, and will continue to work with the company as the ESOP’s consultant and third-party administrator.
About Mounds Pet Food Warehouse
Mounds Pet Food Warehouse operates five Wisconsin stores, located in Madison, Middleton, Fitchburg, Janesville, and Sun Prairie, and offers a range of high-quality, private-label pet foods to its customers, including Dog Power, Purrfect Cat, Horse Power, and various wild birdseeds. Mounds’ associates are among the pet industry’s most skilled and knowledgeable, and are well known for providing exceptional customer service. Committed to community involvement, the company hosts multiple pet-related events each year, supports area humane societies, dog clubs and service animal groups, and promotes community groups and individuals who make a positive difference in the lives of animals.
Employee Stock Ownership Plans (ESOPs) are qualified retirement plans that buy, hold, and sell company stock for the benefit of the employees, providing an ownership stake in the company. ESOPs are the only retirement plan allowed to borrow money to purchase stock and are generally funded only by the company. Selling part or all of a business to an ESOP enables a business owner to sell to a built-in buyer in as little as 60-90 days at full fair market value. There are many significant tax and cash flow benefits of selling to an ESOP. An ESOP also allows for a better-managed ownership transition, preservation of local jobs, and the maintenance of a company’s legacy in the community. According to the ESOP Association there are approximately 7,000 ESOPs in place in the U.S., covering 13.5 million employees.