This allows us to maintain our culture, keep our leadership team in place and provide an opportunity for our new fellow associate owners to accumulate personal wealth.” Joe Balthazor, President
WAUKESHA, Wis. (PRWEB) February 17, 2021
Hallmark Building Supplies has announced the successful transfer of 100% ownership of the company to its employees via an Employee Stock Ownership Plan (ESOP).
Joe Balthazor, President, CEO and Founder continues to lead the company and remains active as President and CEO after the transaction. Balthazor says, “After weighing the options, my wife and I decided the best thing to do was to take the company to 100% employee ownership versus selling to a 3rd party. This allows us to maintain our culture, keep our leadership team in place and provide an opportunity for our new fellow associate owners to accumulate personal wealth.”
“We have always had a strong commitment to growth,” says Katie Sadorf, VP Marketing & Strategy. “Becoming 100% employee owned adds new meaning to that strategy. Our leadership team understands how growth can benefit all stakeholders in the company, including our suppliers and customers, and now our fellow owners.”
Hallmark has expanded over the last 10 years into geographies in the Western and Southern United States. Recently, the Exterior Business Unit added decking products and are in the process of adding a new fencing/cladding/decking product in Levanté® Aluminum Architectural Components. This year, their Interiors Business Unit is adding new DuPont Corian® Endura™: a premium porcelain surfacing material.
“Adding new products, expanding into new geographies and making acquisitions facilitate growth, but so does organic growth,” says Balthazor. “We also look to provide unique solutions to our customers’ needs. Sometimes, that may be as simple as delivering on a different day to help a customer and other times it is as complex as helping customers choose the right materials for their application, or creating a marketing plan to help grow their business.”
About Hallmark Building Supplies
Hallmark Building Supplies is a wholesale distributor of branded building materials that performs sales, marketing, and physical distribution functions for residential and commercial markets in 20 states. The company was founded in 1974.
About ESOP Partners
ESOP Partners is an ESOP service provider that changes lives by creating wealth and sustainable employment through employee ownership and works with business owners and companies to determine if an ESOP is a good fit for their situation. ESOP Partners establishes, maintains, and sustains employee stock ownership plans (ESOPs) throughout the lifecycle to maximize the benefits of being an ESOP company and provide employees with an ownership stake in the company that they work for. Connect with us on LinkedIn: https://www.linkedin.com/company/esop-partners.
ESOP stands for Employee Stock Ownership Plan and is a qualified retirement plan, similar to a 401(k) plan, that can be used as a business transition tool and as an employee ownership vehicle to provide employees with an ownership stake in the company. The ESOP buys, holds and sells company stock, providing employees with a retirement plan benefit and an additional form of compensation. In almost all ESOPs the benefit is funded 100% by the company, providing an ownership stake at no cost to the employee. The total number of ESOPs in the country is about 6,400 representing 14.1 million participants and total plan assets of $1.5 trillion dollars.
Studies have demonstrated that ESOP companies outperform their non-ESOP counterparts. A recent study demonstrated that employee-owned companies are 235% better at job retention than their non-ESOP counterparts (Source: NCEO).