Interesting news and explanation from Schlafly:
In early 2010 we began to realize that Schlafly Bottleworks might not have enough capacity to meet future demand; we also realized that Tom did not have younger family to come into the business and I did not want to purchase his majority stake in the business. By June 2010 we decided that we had to begin work on a formal succession plan. We decided to start by meeting with many of the key employees who had helped to ensure the Brewery’s success to date. In these early meetings we established three goals.
- Keep it local. Find a local investor group to purchase the majority stake in the Brewery. A sale to a strategic buyer, a large international brewer, just did not seem to be the right path. We searched for a group that shared our commitments to independent local ownership, brewing great beer and continued operation of our two Brewery-Restaurants, The Schlafly Tap Room and Schlafly Bottleworks. In doing so, we hoped to provide for continued ownership by myself and Tom Schlafly.
- Create a significant employee stock purchase plan to allow employees to purchase a significant stake in the Brewery over time.
- Do not add any significant new debt to the Brewery so that the Company can continue to re-invest in the Brewery. The idea is that by adding local and employee owners, we strengthen the financial position of the Brewery to ensure that the capital is available to fund future growth.
I am pleased to announce that as of last Friday, the 31st of August 2012, the process is complete; the three goals have been achieved. Many of you followed the announcement of the purchase of a 60% stake in the Brewery by a local group of families led by John Lemkemeier, Wes Jones and Spencer Finney and including Tom’s cousin David Schlafly. The work on this “closed” on May 31st of this year. We completed the work on this purchase last week. A local investor group, committed to building on our local success now owns a 60% stake and Tom and I both retain significant ownership stakes in the Brewery.
During the entire 2+ year process we have been developing the employee stock purchase plan. In July we finalized the details and provided information to eligible employees. Last week, we realized our goal when 28 employees, who met the eligibility requirement of 5 years of completed employment, purchased shares just in excess of a 5% stake in the Brewery. For Tom and me, this was one of the most powerful moments we have experienced in the last 20 years. I now feel a great sense of commitment to work to ensure the future success. My memory may be incomplete, but I feel an excitement similar to 1991. It is a wonderful beginning to a new chapter and increasing the amount of stock owned by employees remains a key goal. We plan to provide more opportunities for these individuals and many other employees to purchase shares in the future.
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