Overview
Across more than 75 years since its founding, Proconex has been a leading provider of process automation control systems and related technologies in the Mid-Atlantic region. The company, with affiliated companies Valspec and Atlantic Valve Services and in partnership with Emerson and its portfolio of industrial services, has served diverse industries spanning life sciences, chemicals, energy, refining, oil and gas, food and beverage, paper and metals, among others. Business leaders attribute company success to the specialized workforce that has remained dedicated to technical excellence and delivering top-tier customer service.
Situation
Proconex sought a business transition plan that would provide some liquidity for its shareholder and begin to transfer ownership internally to employees. The company also aimed to remain independent and continue as a management-driven enterprise that attracts the most talented employees and rewards them with equity ownership.
Solution
Proconex engaged SES ESOP Strategies’ affiliated law firm Stevens & Lee to provide legal work for establishing an ESOP trust and completing a minority ESOP transaction. The SES team assisted with financial due diligence, modeling ESOP structures and negotiating financial terms with the lender, and Stevens & Lee attorneys helped negotiate the financing of the ESOP transaction. Proconex accomplished the ESOP transaction in April 2024.
“Our skilled professionals drive the success of our business, so we’re thrilled to reward and motivate their commitment to technical excellence and customer satisfaction,” said John Otte, President and formerly the sole shareholder of Proconex. “The ESOP transaction allowed me to begin a liquidity and succession process internally, and Stevens & Lee was integral in delivering pragmatic guidance across all phases of our ESOP transition.”
For more information on this transaction, please contact Jim Steiker, Chairman of SES ESOP Strategies, at 215.508.5643, or Vince Capone, Vice President, at 215.508.7716.
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