Overview
Renova Environmental Company has completed more than 2,200 projects since its 2006 founding in New Jersey, the state with the highest amount of superfund sites in the country. What started as a minority-owned company that offered residential oil tank contracting services has flourished under the Small Business Association’s (SBA) 8(a) Business Development Program, and now excels as a prime contractor for federal and private clients. Renova values safety, quality, sustainability and a team-oriented approach among employees to further grow within the environmental remediation and restoration space.
Situation
Renova leadership sought a business model that would strengthen its performance after the company graduated from the SBA’s 8(a) Business Development program. The goal was to recognize employees’ value through broad-based company ownership, sustain long-term growth and allow the company to remain independent. An employee stock ownership plan (ESOP) met all these needs.
Solution
Renova engaged SES ESOP Strategies’ affiliated law firm, Stevens & Lee, to provide legal work for establishing an ESOP trust and completing a minority ESOP transaction. Stevens & Lee affiliate Stevens & Lee Public Affairs, a New Jersey-focused provider of legislative, government process and regulatory affairs consultation, assisted with key New Jersey environmental regulatory requirements that had not previously considered ESOP ownership. Company stock was purchased by the ESOP and the transaction closed in December 2022.
“I believe in a more equitable distribution of wealth, and employee ownership allows us to reward the loyalty and dedication of our employees,” said Paulo Rodriguez Heyman, President and Founder of Renova. “Stevens & Lee was a great partner throughout the transaction, handling complex issues and clearing hurdles with efficiency and quality service. They provided valuable assistance across this company-changing transition.”
For more information on this transaction, please contact Sean-Tamba Matthew at 215.508.7705.