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Consumers Pipe & Supply Co. has completed a transaction to become 100% employee-owned through its newly created Employee Stock Ownership Plan (ESOP). The company was founded in Commerce, California, and is a value-added distributor of all types of pipe, fittings, valves, actuation, and steam specialties. Current cooperate offices are in Fontana, California. Since its inception, Consumers Pipe & Supply has been owned and managed by the Abeling family.
After 56 years of significant expansion and growth, the Abeling family has transitioned 100% of the Consumer Pipe & Supply's total ownership to all the employees of the company through a qualified retirement plan known as ESOP. All eligible employees will be granted shares of Consumer Pipe & Supply stock each year, at no cost, allowing them to earn ownership over time through their service to the company and accumulate tax-deferred retirement wealth. Consumers Pipe & Supply Co. joins a group of elite 100% employee-owned companies across the United States of America.
According to Michael Abeling, president and CEO, “Each employee of Consumers Pipe & Supply Co. is a trusted team member. We want our employees to feel that they ‘own and operate’ their own business which fosters tremendous pride resulting from owning a stake in the company. We also want our hard-working and loyal employees to benefit beyond their wages alone if they continue to help grow their company. Together we strive to be more efficient, safe and responsive to our customers’ needs.”
Abeling decided to implement this plan because he felt it was the best and most sustainable path forward for the employees and managers of Consumer Pipe & Supply in a manner that protects the legacy his family has built. “Legacy was a critical factor in selecting this transition, but equally as important was ensuring that anything we did as owners would also help the employees succeed,” he said.
Consumers Pipe & Supply Co. was advised by Ambrose Advisors, a national investment banking firm specialized in employee-ownership transactions.
“Michael Abeling’s goal was to secure a sustainable future for Consumers Pipe & Supply Co. in a manner that would be highly beneficial to its managers, employees, customers, vendors, and the community," said Michael Harden, senior managing director with Ambrose Advisors. "Employee ownership, when done right, benefits all stakeholders and should be celebrated. It is a true win/win transaction for all parties involved and we were pleased to be a part. We heartily congratulate Consumers Pipe & Supply Co., and thank them for trusting Ambrose Advisors to manage this transition process.”
Musick Peeler & Garrett LLP acted as legal counsel in connection with the transaction.
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