Bandit Becomes 100% Employee Owned Through an ESOP
Bandit Industries, Inc. ("Bandit"), a leading designer and manufacturer of wood and waste processing equipment, is pleased to announce the sale of 100% of the Company to an Employee Stock Ownership Plan ("ESOP") Trust. Lazear Capital Partners served as the financial advisor to Bandit for the transaction.
The announcement comes after two previous attempts to sell Bandit - once to another manufacturer and once to a private equity firm. "We realized neither was a good fit for Bandit, so we made the decision to sell to our trusted employees," said Dianne Morey.
The ESOP ensures the corporate culture that has made Bandit a success for 35 years will remain intact. Jerry Morey explains, "We have a very strong, dedicated dealer organization and a great crew, which is the key to our success. Our employees are experienced, smart and loyal to us, which is why we are so confident that an employee owned company is the right fit for Bandit. All of our employees will have a stake in the company."
Bandit engaged Lazear Capital Partners ("LCP"), an investment banking firm in Columbus, Ohio, to arrange the transaction and serve as the Company's exclusive financial advisor. Jerry Morey commented, "Lazear Capital spent the time up front with us to customize a solution that benefitted everyone at our company, and they exceeded our expectations in executing the transaction."
In its role as financial advisor to the Company, LCP customized a structure to address key goals and objectives related to shareholder liquidity, tax advantages, employee benefits and financial flexibility for the Company. LCP arranged and led a multi-disciplinary deal team that executed the transaction efficiently while meeting shareholder objectives.
About Bandit Industries, Inc.
Founded in 1983 and based just outside Mount Pleasant, Michigan, Bandit Industries is a leader in the design, manufacture, distribution and service of hand-fed and whole tree wood chippers, stump grinders, forestry mowers, Beast recycling machines and other specialty wood and waste processing equipment. Bandit serves professionals in the logging, forestry, tree care, land clearing, recycling, and renewable energy markets through a global dealer network of over 240 locations.