Hollandia Produce, L.P. Transitioning to an Employee-Owned Company
CARPINTERIA, CA – Hollandia Produce, L.P. is undergoing a bit of an ownership shakeup.
The company announced in a press release that it is making the transition to become employee-owned, though the key executives will remain heavily involved in the company’s operations throughout the changes.
“I am honored to lead Hollandia through this transition, which will continue our commitment to our customers, employees and company values,” Pete Overgaag, who is staying on as CEO, said in the release. “Hollandia is well positioned for growth. I am excited our employees will be able to share in our future success."
An Employee Stock Ownership Plan (ESOP) works to ultimately increase the stock price of a company and directly benefit its workers. According to Hollandia, it is a qualified retirement plan that invests in the common stock of the sponsoring company and provides eligible employees with an ownership interest in this company.
Employee ownership has been connected to the promotion of employees’ engagement, giving them a vested interest in the company’s performance and success. About 7,000 U.S. companies have an ESOP, according to the National Center for Employee Ownership (NCEO).
Hollandia’s transition to an ESOP has received support from both Mosaic Capital Partners and Endeavor Structured Equity and Mezzanine Fund, who offered structuring and funding for the changeover.
Overgaag added that he and the executive team are proud to uphold Hollandia’s emphasis on tradition and community by rewarding its loyal employees with a significant retirement benefit that will add no cost to them.
A performance survey conducted by the Employee Ownership Foundation in 2014 showed that 80 percent of those surveyed responded with an increase in company stock value post-ESOP when determined by independent valuations.
