von Drehle Corporation
Enclosed is a tombstone that describes a transaction recently completed by ATICG as Project Manager representing the selling shareholders.
We represented the majority shareholders of von Drehle Corporation in a combination equity recapitalization – Employee Stock Ownership Plan. von Drehle Corporation has been a leading supplier of towel and tissue products for the away-from-home market since 1974. You'll find their products in thousands of industrial and commercial locations, in medical and government complexes, and in airports and hotels. Through an international network of more than 300 distributors, von Drehle sells to industrial, commercial and institutional suppliers, as well as to major contract cleaners and building-maintenance services. Their unique controlled-label marketing program offers distributors a high degree of exclusivity for a complete product line.
The recap and sale of stock to the Company’s new ESOP and Trust represented 30% of the then outstanding stock. The Company, taxed as a “C” Corporation on the date of sale, gives the sellers the ability to convert stock into liquid assets while deferring the Capital Gain Tax on the sale. This sale of 30% of the stock to the ESOP allows management to remain in control of the day-to-day operations of the Company, communicates shareholder intent, and gives the managers and employees a common incentive toward improved productivity, profitability and ultimately a higher share value.
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