Lorain, Ohio-based Absolute Machine Tools announces that the company 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 percent 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 and recognize that they are the drivers of the company's success.
"All Absolute's employees are valued," said Steve Ortner. "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."
Steve Ortner will continue to be the company's president and chief executive officer, 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, and retain and recruit top talent.
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.
"From our employees to our customers, this is a win/win for everybody," Steve Ortner said. "Courtney and I cannot thank everyone enough for not only working for 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."
As seen in Advanced Manufacturing.