Employees of Cyl-Tec now own 100% of the business through a newly established Employee Stock Ownership Plan – also known as an “ESOP.”
As of December 23, 2021, Cyl-Tec employees officially became owners of the company. President Tom Bennett and his brother, Executive VP John Bennett, previously owned the company, which was founded in 1990 by their brother, Jim, and their father, George. The transfer of shares means Cyl-Tec employees now directly benefit from the growth of the company overall and own a stake in the company’s continued success.
“I can’t think of anyone better to sell the company to than our employees who have worked every day to make Cyl-Tec successful. They are the ones who are committed most to continuing Cyl-Tec’s mission and will ultimately benefit from its growth in the future.” said Tom.
Very little will change in terms of management and day-to-day operations. Tom plans to remain as President and CEO of Cyl-Tec over the next several years until his retirement. Current department managers will also stay on continuing to make the day to day decisions for the company’s products and services.
Employees learned about adding “owner” to their titles at a company holiday party in December.
“I’m thrilled that the company I work for cares so much about the employees and our future to provide us with this additional benefit,” said Elliott Levine, Engineering Manager, who has worked at Cyl-Tec for ten years. “This is one more reason why I love Cyl-Tec, and now that I own part of the company, I will also benefit from its future growth.”
Tom and John’s decision to sell the company to the employees comes 30 years after it was founded. They wanted to ensure that Cyl-Tec would always be true to its culture and committed to building and developing great products.
In the United States, there are only about 6,500 companies that have an employee ownership plan. And of those, only about half are 100% employee owned. Cyl-Tec is proud to be one of those companies that is 100% employee-owned.
“Cyl-Tec employees over the years have always acted like owners,” said Tom. “Now, I’m excited to say they literally ARE owners and will share in the financial benefits of a thriving, growing company such as Cyl-Tec. I am very glad to be a part of it and look forward to our bright future.”