Sale of Absolute Machine Tools to ESOP
April 1, 2019
Absolute Machine Tools has been sold and is now owned by an Employee Stock Ownership Trust (ESOP), effective immediately. In the transaction, owners Steve and Courtney Ortner sold 100% of their ownership interest to a newly created ESOP, allowing current and future employees to gain a beneficial ownership interest in the company without any personal monetary investment.
The ESOP was developed to give back to Absolute Machine Tools' employees. Steve Ortner said, "All of Absolute's employees are valued. Courtney and I could not have done it without their hard work and dedication, and as part of my legacy, I wanted to ensure their personal success." Ortner will continue to be the company's President and CEO, managing sales and the company's day to day operations. "The formation of Absolute's ESOP is intended to preserve outstanding customer service through increased productivity and sense of ownership, eliminate income tax obligations to federal and state governments allowing for reinvestment of cash back into the company for future growth opportunities while retaining and recruiting top talent," said a company spokesperson.
As part of the new structure, the Ortner's formed several new departmental strategic planning committees and a Board of Directors. These two internal entities will help to influence future financial and growth decisions for the company. "Absolute's employees will not only benefit from the acquisition of ownership, but it also serves as an influential retirement program where upon departure will automatically roll their stock into an IRA," said the spokesperson.
"From our employees to our customers, this is a win/win for everybody," said Ortner. "Courtney and I cannot thank everyone enough for not only working with Absolute, but also believing and trusting in us enough to grant us their business over the past 30 years. It was our turn to give back."
For more information contact:
Courtney Ortner
Absolute Machine Tools, Inc.
7420 Industrial Parkway
Lorain, OH 44053
800-852-7825 / 440-960-6911
sales@absolutemachine.com
www.absolutemachine.com
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