Spinnaker Coating, LLC, a manufacturer of adhesive coated papers and films, announced today that the company has become an S Corporation ESOP, effective February 1, 2012. In the transaction, prior investors sold 100% of their ownership 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 investment.
Effectively, the ESOP is a qualified retirement plan which, based on company performance, could generate significant retirement benefits for Spinnaker’s approximately 250 Employee Owners.
Commenting on the announcement, Louis A. Guzzetti, Jr., Chairman and CEO of Spinnaker, said, “This transaction will give our employees a financial interest in the success of the business, making the positive bonds between Spinnaker teammates even stronger than they are today. It represents a very tangible way to reward those who have played the critical role in Spinnaker’s success since we purchased the assets of our predecessor company out of bankruptcy in 2002. Today, we are a robust competitor in the pressure sensitive industry, based primarily on our customer-driven culture that places service at the top of our priority list. Delivering unparalleled service 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.”
Guzzetti, who will continue in his current position, 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 Customer Service model, help retain 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.”
Dan Potts, who has been with Spinnaker for 27 years, explained the reasons for his enthusiasm about the ESOP: “Throughout my career with Spinnaker, we have had more than our share of ups and downs. In addition to periods of success, there were definitely times when my family and I were concerned about my job and our future - which I imagine is the way a lot of families in America feel today. With the creation of an ESOP, I know that all of us on the shop floor will feel confident that our jobs aren’t going to disappear. We look forward to becoming even more productive members of an organization that we know, by their actions not just words, truly values everyone who works at the Company.”
Spinnaker Coating is a customer-focused company that develops, manufactures, and markets adhesive-coated paper and film constructions for conversion by printers and industrial users into marketing, identifying, promoting, labeling, and decorating applications. www.spinps.com