Herregan Distributors was established in 1965 and has grown into one of the largest flooring distributors in the United States. A family-owned company across generations, it fosters a team-oriented approach among employees to further grow within the specialty flooring retail space. Leadership promotes a customer-first culture and attributes company success to high-quality customer service and finding solutions to a wide range of flooring needs.
Herregan leadership sought a transition plan that would strengthen its commitment to employees through company ownership, sustain long-term growth, allow the company to remain independent and provide a management transition solution for the next generation of leaders. An employee stock ownership plan (ESOP) was the ideal fit.
Herregan engaged SES ESOP Strategies’ affiliated law firm, Stevens & Lee, to provide legal work for a 100% ESOP transaction that was structured and led by Chartwell Financial Advisory. All Company stock was purchased by the ESOP and the transaction closed in March 2023. As a result of becoming a 100% ESOP-owned S Corporation, Herregan effectively retains key exemptions from corporate federal and state income taxes.
“We are pleased to reward the contribution and passion of our employees through employee ownership,” said Craig Folven, President of Herregan. “Stevens & Lee was a great partner throughout the transaction, simplifying complicated materials and providing efficient and quality service. We were happy to have their valuable assistance through this important transition.”
For more information on this transaction, please contact Ed Renenger, President and CEO, at 610.478.2238.