For more than three decades, NCC Automated Systems, based in Souderton, PA, has integrated and manufactured automation equipment for the food packaging and ophthalmic lens production industries. In its 50,000-square foot facility, NCC manufactures and assembles conveyors, builds control panels and wires systems and tests prior to shipment. The company has 75 employees.
Having already created an ownership culture at NCC, President Kevin Mauger embraced the idea of an ESOP as soon as he learned it was an option. Mauger was the sole shareholder, and the company was structured as an S Corporation. He sought to sell a significant interest in NCC to its employees. After an enthusiastic recommendation from another SES client, Mauger engaged the firm to implement an ESOP.
SES professionals completed a feasibility study for NCC, and SES’s affiliated law firm executed the ESOP transaction. During the process, NCC converted from an S Corporation to a C Corporation. The benefits of employee ownership resonated throughout the transition and ownership culture was very important to Mauger from a cultural and philosophical standpoint. The transaction closed in April 2017. Following the implementation of the ESOP, Mauger surprised employees (now employee owners) with the news, which further solidified the ownership culture instilled at NCC.
“The team from SES was immensely helpful in helping us achieve our goals,” said Kevin Mauger, President of NCC. “An ESOP is an ideal employee benefit and represents the core beliefs of NCC, rewarding those employees who have worked so hard to foster the growth of our business. We look forward to amazing things in the future.”
For more information on this transaction, please contact Jim Steiker, Chairman, at 215.508.5643, Paul Fusco at 215.508.5642 or Michael Golden at 215.508.7715.