2005 FIN – O’Toole Sells Atlantic to Employees
November 15, 2005 FIN – Atlantic Fasteners converted to a 100% employee owned company, CEO Patrick J. O’Toole announced.
“It’s a ‘win–win’ for everyone,” majority owner O’Toole declared. O’Toole and Carol Peters founded the company in 1981. “It’s a way for the owners to diversify their investment while giving employees a secure transition and an opportunity to share in future growth when they retire,” O’Toole explained. “For years, we’ve considered buyout offers from local and national fastener firms, but in the end we felt an Employee Stock Ownership Plan (ESOP) was the only way to ensure that a great business with a first-rate reputation wouldn’t be ruined,” O’Toole explained.
He told FIN he already senses a newfound energy and excitement among the employees.
Over the next 12 years, employees will be allocated 100% ownership as the current owners are paid off.
A second minority owner, president Tony Peterson, joined the firm in 1984.
Peters recalled that the “first years were quite lean and we were working seven days a week just to survive. The company had been going bankrupt for the second time when O’Toole bought it, she explained. “Both customers and top suppliers shunned us due to our poor reputation.
Peters was able to acquire SPS Unbrako authorization and “slowly, over time,” other name brands, such as HeliCoil, Loctite, ITW Fastex, Holo-Krome and Flexloc.
O’Toole is past president of the National Fastener Distributors Association (NFDA) and Peters is past president of the New England Fastener Distributors Association (NEFDA).
The founding partners and Peterson will remain with the company in their current positions.
John Kraus is vice president for sales; Doug Swain, vice president for operations; Dean Johnson, MIS director; and Frank Hokunson, comptroller.
Atlantic is a $13 million commercial and aerospace fastener specialist, which sells throughout New England. Its annual compounded growth rate from the start stands at 16.4%. The Springfield Republican newspaper reported the employee acquisition was valued between $5 million and $10 million with half the fund from a bank loan and half from a 12-year loan from the owners.
Atlantic Fasteners is located at 49 Heywood Ave., West Springfield, MA 01089. Tel: 413 241-2208 Fax 413 785-5770 Web: atlanticfasteners.com ©2005/2013 Fastener Industry News.
For information on permission to reuse or reprint this article please email: FIN@GlobalFastenerNews.com
See also “2011 FIN – O’Toole: Bar Coding Key to 30 Years of Atlantic Fasteners Growth” in the Fastener History section of GlobalFastenerNews.com
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