St. Louis, Missouri - July 13, 2021: Cee Kay Supply, Inc., the largest family-owned independent distributor in the Midwest for industrial gases, welding equipment, & dry ice is proud to announce the formation of its new Employee Stock Ownership Plan (ESOP) designed to provide 49% stock benefits to the 135 employees.
Cee Kay Supply now joins a group of over 6,500+ U.S. companies that are currently operating as ESOPs including the 171 in Missouri & 137 in Illinois. The transaction has also included additional operating companies Gateway Cylinder Technologies, ArchView Carbonic and CryoGas CO2 to create the newly formed employee-owned entity CK Supply, Inc.
Tom Dunn, past CEO and Owner stated, “The employees have always been at the center of growth & success for Cee Kay Supply. As I explored transitioning out of ownership, the ESOP model was a great solution to preserve the brand and our family ownership legacy, while allowing future employees to directly share in the benefits of their hard work and long-term dedication.”
Due to increased employee involvement, ESOP companies generally have a superior track record compared to other companies. In various studies, published by the National Center for Employee Ownership, ESOP companies have higher productivity, profit margins and overall job satisfaction. Additionally, their employees have been found to have 2.2x as much in retirement plans, 20% more financial assets, and 53% longer median job tenure*.
Current President & CEO Ned Lane also stated, “I am excited for our new employee owners. Normally when someone retires, they receive a gift from the company. With Tom’s retirement, he has given us the gift of independence & ownership by selling to the ESOP.”
To assist in the transaction Cee Kay Supply engaged Prairie Capital Advisors as the financial advisor and Polsinelli law firm to assist in closing the transaction. Cee Kay Supply has also appointed an independent ESOP trustee which with its advisors will continue to serve on behalf of the employee interests.
The new employee owners of CK Supply will celebrate this company milestone together in August with a company picnic held at first generation owner Mim and Paul Dunn’s Lake property.
For any questions, please contact Ned Lane, Cee Kay Supply President, at 314.644.3500
*Statistics provided by the National Center for Employee Ownership (NECO.Org)