MINNEAPOLIS — Twin City Die Castings Co., a full-service aluminum and magnesium die casting provider that has been family-owned for nearly 100 years, announced Tuesday that it will become employee-owned.
An Employee Stock Ownership Plan set up by Twin City Die Castings involves current owner and Chief Executive Officer Douglas Harmon, selling a majority portion of his interest in the company to its employees. The sale will be made via shares of company stock to employees as part of their retirement benefits program. The ESOP became effective December 9, 2017.
After 41 years with the company that was previously co-owned with his brothers, Steven and Mark, and owned by his father, James, prior to that, Harmon announced the plan to employees last week. Harmon will serve as the company's chairman, continuing to work through the transition period. He will also remain active in the industry as chairman of the North American Die Casting Association (NADCA).
"I've worked with the TCDC executive team to come up with a plan that includes all of you as the new owners of TCDC, through an Employee Stock Ownership Plan," Harmon said to TCDC's nearly 250 employees. "Through the years I've seen how you have dedicated yourself to our company and customers — you are our greatest asset. I'm excited for you to directly benefit from our future success."
Todd Olson, TCDC chief financial officer and Harmon's successor as CEO, shared that a sale had been in the planning stages for three years, and an ESOP was selected as the best way for the company to maintain its family culture. The employee benefits of the plan expand upon their current retirement plan. As TCDC grows its value, the employee-owners will see their shares in the ESOP grow, which means that they will have more money saved for their retirement.
Family owned since 1919 when it was founded in Minneapolis, TCDC now has three U.S. locations — Minneapolis and Monticello, Minn., and Watertown, S.D.
As see in the Watertown Public Opinion news.