Overview
For over 76 years, BostonbeaN Coffee Company has relentlessly pursued excellence, evolving into Greater Boston’s premier provider of coffee, pantry and breakroom solutions. The company offers delivery and restocking services for a variety of products – coffee, tea, healthy snacks and more – that add comfort and convenience to the workplace. BostonbeaN’s leaders believe that their team, from warehouse employees and delivery personnel to sales professionals, have driven company successes through their commitment to quality and service. This dedication has set the company apart as the trusted partner for workplaces across the region and fostered long-lasting relationships with clients.
Situation
Driven by a deep commitment to employee empowerment and long-term growth, BostonbeaN’s leadership team embarked on a transformative journey. Their vision: to reward the dedication of every team member, secure liquidity for the departing shareholder and fortify the company’s foundation for generations to come. A comprehensive analysis of various transition strategies revealed that a 100% ESOP would best achieve the company’s business and employee-focused goals.
Solution
To realize this evolution, BostonbeaN partnered with the expert team at SES ESOP Strategies (and their trusted affiliate, Griffin Financial Group). Together, they explored a spectrum of ESOP structures and financing solutions—each tailored to maximize value for employees and ensure a smooth transition. Griffin orchestrated a highly competitive capital raise, engaging top-tier senior lenders and securing optimal financing terms. This strategic approach not only fulfilled the shareholder’s liquidity objectives but also preserved robust cash flow, empowering BostonBeaN to thrive as a 100% employee-owned enterprise. Griffin also managed the trustee selection and due diligence processes and collaborated with SES and Stevens & Lee, SES’s affiliated law firm, to negotiate the terms of the deal and facilitate the company’s business transition, providing a seamless transaction. Attorneys from Stevens & Lee helped to prepare the ESOP transaction and related documents. SES and S&L collaborated to navigate complex financial and legal tax structures for an optimal solution that allowed the seller the option to defer taxes on the gain from the sale under §1042.
Peter Johnson, Owner of BostonbeaN, affirms, “Our employees are the heart of our success. We are proud to reward their hard work and unwavering dedication by making them true owners of the business they helped build. In expertly guiding both the financing strategy and the intricate technical details of the ESOP transactions, SES and Stevens & Lee demonstrated exceptional teamwork and an unwavering commitment to client satisfaction, setting a gold standard that truly defines our way of doing business.”
For more information on this transaction, please contact Mark Russell, Head of Finance, at 817.566.1013 or Vince Capone, Sr. Vice President, at 215.508.7716, Sean-Tamba Matthew at 215.508.7705 or Otis McCullough, Sr. Analyst, at 215.508.5640.