Respected Provider of Regional Freight and Dedicated Logistics Services Becomes 100% Employee-Owned

Overview

S&H Transport, Inc. (S&H Transport or the Company) has been a respected provider of regional freight and dedicated logistics services for more than 30 years. Headquartered in York, Pennsylvania, the Company has earned a strong reputation for safety, reliability and customer service. S&H Transport’s success is rooted in the professionalism of its workforce and a culture built on trust, accountability and long-term relationships.

Situation

As part of succession planning, founder Steve Shellenberger began evaluating transition strategies that would keep the business on a stable, growth-oriented path, reward the employees who contributed to its success and provide liquidity to owners. The leadership team also sought a solution that would help attract and retain talent in a competitive industry. After exploring a range of options, transitioning to 100% employee ownership through an ESOP emerged as the best fit for the Company’s goals.

Solution

S&H Transport engaged SES ESOP Strategies (SES) and its affiliated law firm, Stevens & Lee (S&L), to assist throughout the ESOP transaction. SES began with a comprehensive transaction analysis, providing a range of value, modeling various transaction structures and evaluating shareholder proceeds to help ensure that the ESOP aligned with the Company’s goals.

Following the analysis, SES and S&L collaborated closely with the Company’s leadership and outside advisors to design and structure the ESOP. SES led the financial due diligence process, modeled the proposed ESOP transaction and negotiated the term sheet with the ESOP trustee. Working alongside the Company’s outside counsel, attorneys from Stevens & Lee provided legal guidance, prepared the ESOP plan, key transaction documents and advised on corporate governance and a management incentive plan to help attract and retain key employees. S&H Transport became a 100% ESOP owned S Corporation, delivering meaningful employee ownership in their home community, all while providing significant tax advantages by effectively eliminating corporate federal and state income taxes.

“Our decision to become employee owned reflects our belief in the skill and dedication of our team,” said Jordan Kolb, President of S&H Transport. “By making our employees owners of the Company, we are investing in the future of the business and the people who drive its success. SES ESOP Strategies and Stevens & Lee were excellent partners throughout the entire process, keeping all parties on track to meet deadlines and delivering results that aligned with our goals and values of top-quality client service.”

For more information on this transaction, please contact Ed Renenger at 610.478.2238, Mark Russell at 817.566.1013, Sean-Tamba Matthew at 215.508.7705, Vince Capone at 215.508.7716, or Kyle Priebe at 215.508.5637.