Overview
Founded in 1964, Wylie & Son, Inc. (Wylie or the Company) is a family-owned and operated business that has grown into a national leader in agricultural equipment manufacturing and marketing. With 14 locations across Texas and Oklahoma, Wylie primarily serves farming enterprises in the Southwestern U.S. and is recognized as a top provider of weed control and other farm and industrial equipment.
Business leaders affirm that the Company’s long-term success and respected reputation stem from the dedication of its workforce, who build, deliver, and connect regional agricultural communities to high-quality agribusiness products and services. Fostering trust and gratitude between company and customer has long defined how Wylie employees do business.
Situation
The guiding principle of Wylie’s founder, Loy Wylie, was to “hire the best people, and let them do their jobs.” This commitment to quality and professional leadership has remained central to the Company’s identity since its founding.
Determined to honor and extend this legacy, Scot Wylie, who began his journey with the company at just 12 years old and has served as CEO for the past 36 years, recognized the need for a transformative succession strategy. His goal was clear: to reward the dedication of Wylie’s workforce, secure the company’s future and ensure a seamless transition of leadership. After a rigorous and thoughtful evaluation, Scot championed the adoption of a 100% Employee Stock Ownership Plan (ESOP) — a bold move that not only acknowledges the invaluable contributions of every team member but also positions Wylie & Son, Inc. for sustained success and growth in the years ahead.
Solution
Wylie partnered with SES ESOP Strategies to structure and implement the new ESOP. SES guided Wylie through a customized ESOP structure and financing solution, orchestrating a competitive capital raise by engaging top-tier senior lenders and securing optimal financing terms.
The SES team also navigated complex financial and legal tax structures, enabling the seller to defer taxes on the gain from the sale under §1042. Additionally, SES professionals ensured the establishment of a Stock Appreciation Rights Plan to reward future company leaders.
“We’re proud to reward the dedication of our employees with company ownership, because it’s their commitment to our customers that has helped make the Wylie brand a leader in agribusiness,” said Jason Fisher, President and CEO. “SES ESOP Strategies delivered critical guidance in our evolution to ensure that our workforce, legacy and foundational values were not only preserved but positioned for future growth.”
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.