Harold Beck & Sons, Inc. is a Pennsylvania-based industrial actuator design and manufacturing company. The idea began in 1936 with the inception of the “Beck Triple Function Mechanism” actuator, and the company was incorporated in 1960. Today, the company has a broad range of actuators controlling processes at power utilities, municipal water plants and other heavy industry. The business has grown into a highly specialized manufacturing organization with installations in over 70 countries around the world.
An attribute to their success that has not changed over the years is the company’s commitment – their commitment to people and growth. Harold Beck & Sons is committed to investing in the future of the business through employee development and ongoing process improvement. They continue to focus on customer and employee satisfaction, achieving a 100% on-time delivery record and integrated manufacturing capabilities. They also persistently develop ways to improve the profitability of their business.
Harold Beck & Sons is an intergenerational family business. In the long-term planning for the business, the owner wanted to maintain the legacy and culture for the employees of the company. SES conducted a comprehensive transaction analysis to assist the owner in deciding on the best course of action for the company to accomplish those objectives.
Based on the outcome of the transaction analysis and the sustainable, long-term plans that the owner envisioned for the company and its employees, the decision was to sell 100% of the company to an employee stock ownership plan (ESOP). This allowed the owner to fulfill the goals originally set forth for the company. There was also a unique component in the form of a charitable contribution that was an important objective of the owner and made possible by the ESOP transaction.
Throughout the process, SES served as the trusted financial advisor to the company and managed the entire course of the ESOP transaction, and the legal work was done by our partners at the law firm of Stevens & Lee. At the culmination, the ESOP purchased all of the outstanding shares of the company from the shareholder, and on December 30, 2021, Harold Beck & Sons became 100% ESOP owned.
“Harold Beck & Sons was founded on developing high quality electric actuators, providing outstanding customer service and providing growth opportunities for employees. We wanted that to continue, and an ESOP was the perfect decision for us to do that,” stated Harold Beck & Sons’ President and CEO Douglas Beck. “SES ESOP Strategies helped us ensure that our company’s growth could be sustained as an ongoing legacy for the company and our employees.”
For more information about this ESOP transaction, please contact SES President and CEO Ed Renenger at 610.478.2238 or Paul Fusco at 215.508.5642.