AdvantaPure & Its Parent Company, NewAge Industries, Initiate ESOP to Benefit Customers & Employees
Employees Now Own 30% of the Company
Southampton, PA — Sanitary tubing and hose manufacturer AdvantaPure is pleased to announce that it is now employee owned. Called an ESOP (Employee Stock Ownership Plan), the program involves the selling of 30% of the company, via shares of stock, to its employees as part of their retirement benefits. The ESOP became effective at the beginning of the year.
“This has been a goal for a number of years,” says CEO and majority share owner Ken Baker, “and I’m glad the plan has now become reality. Making the employees part owners is a big benefit to our customers, as well as the employees.”
NewAge Industries built its solid reputation by providing a high level of customer support and service, along with superior products, and the AdvantaPure division is well on its way to a similar standing. The establishment of the ESOP lets employees expand upon that by allowing them to take true ownership of their positions. Baker says “When a customer calls, they can speak with an owner. The employees’ jobs are part of an investment in their future, and that’s reflected in their communications with customers and suppliers, and with each other, now more than ever.”
Another customer benefit resulting from the ESOP is that it sets up a succession plan for the organization. Many of today’s large, multi-national corporations become larger by acquiring small companies. Plants are often closed, and production is moved offshore. The knowledge and talent of those employees is lost as they find jobs in other industries. Baker wanted to avoid that possibility and, at the same time, help secure a future for NewAge, AdvantaPure, and its employees.
With NewAge Industries’ strong customer base for its products – plastic and rubber tubing and hose, fittings, clamps, assemblies, and customized items – the company is poised for continued growth. Its AdvantaPure product line, consisting of sanitary tubing and hose for the pharmaceutical, chemical, and biotechnology markets, is continually expanding with innovative products, such as the Hose Track™ Hose Assembly Identification and Lifecycle Analysis System, the AdvantaLabel® Hose Labeling System, and new molding technologies for silicone products.
For employees, the ESOP represents an expansion of their current retirement program, which already includes pension and optional 401(k) plans. They will now be rewarded with ESOP retirement benefits as a direct result of their on-the-job efforts.
