Multi-Utility Construction Company Values Dedication of Workforce, Becomes 100% Employee Owned

Overview

Across more than 25 years, MCG Utilities has grown to offer a full range of construction, engineering and procurement services that support large-scale utility operations spanning industries nationwide. Based in West Chester, PA, the company has built a reputation for delivering custom and innovative solutions to infrastructure and construction jobs, serving as a single-source provider of all project elements from planning, permitting and design to engineering and construction. MCG leadership attributes business success to the dedication of its highly-trained and specialized workforce of operators, technicians and construction crews.

Situation

MCG’s leadership sought a business transition plan that would provide business equity and future growth rewards to its employees, sustain long-term growth and create liquidity for its shareholders, all while maintaining the independence and customer-focused legacy of the company. A 100% employee stock ownership plan (ESOP) emerged as the ideal fit for these goals.

Solution

MCG engaged SES ESOP Strategies and its affiliated law firm, Stevens & Lee, to deliver the ESOP plan and guide the transition to full employee ownership. SES provided financial due diligence, assisted in structuring and forming the ESOP, raised financing and negotiated financial terms with the lender. Stevens & Lee collaboratively prepared the ESOP plan, all transaction documents and structured a Stock Appreciation Rights Plan to benefit future company leaders. In June 2024, in its fastest-ever transaction from engagement to closing, SES achieved all business transition goals in only three months.

“We thrive because of the dedication and technical skill of our employees, and an ESOP was the perfect approach to reward their commitment and ensure they benefit from the company’s continued success,” said Phil Seeherman, Chief Financial Officer of MCG. “SES and Stevens & Lee executed on all details of the ESOP transaction with the efficiency and high-quality service our business values.”

For more information, please contact Jim Steiker, Chairman, at 215.508.5643.