Augusta-based printer transfers ownership to its 200 employees
Courtesy / J.S. McCarthy Printers
After creating an employee stock ownership plan, J.S. McCarthy Printers is now owned by its 200 employees, including pressroom manager Randy Robbins, left, and Shawn Bernier, press operator.
J.S. McCarthy Printers, an Augusta-based commercial and packaging printing company owned by the Tardiff family since 2000, is now owned through an employee stock ownership plan, or ESOP.
The new structure, in effect since Sept. 1, was announced on Monday. J.S. McCarthy joins a growing list of employee-owned businesses in Maine that includes construction firms Cianbro Corp. and Sargent Corp., as well as Moody's Coworker Owned collision service and Johnny's Selected Seeds, of Winslow.
Rick Tardiff, who bought J.S. McCarthy Printers in 2000 and expanded it through a number of acquisitions, will stay on as board chairman, with his four children and the current management team in charge of daily operations.
"It was always something we had talked about, and as my dad got ready to officially retire and make his exit from the business, this became the definite direction that we were heading in," Michael Tardiff, the company's vice president of marketing, told Mainebiz via phone Tuesday morning.
He said the the arrangement is equally attractive for the family as well as the employees, because it removes uncertainty about potential takeovers.
"Obviously being a leader in the industry we get approached by other companies to buy us out," he said, "and the thought was always, 'What does that do for the family who were continuing to work in the business and also for the employees?' In a lot of these cases, you don't know what will happen to the company, and employees, so this is definitely a way to keep it local and people employed."
Jon Tardiff, president and CEO since 2017, said that on average, employee owners at ESOP companies have 2.5 times more saved for retirement while underscoring that ownership also comes with responsibility.
"Employee owners have a unique opportunity to drive share value," he said in an announcement to staff.
J.S. McCarthy Printers has sales offices in Portland, Boston and, in Connecticut, Hartford and Stamford.
The newly formed ESOP is a qualified retirement plan offered in addition to the company 401(k), and will generate retirement benefits for its 200 employees.
Michael Tardiff said he also sees the structure as a draw for job applicants.
"We think it'll be an additional benefit that will hopefully add an enticing feature for people we're trying to hire," he said, "and also bring some accountability and ownership to our current employees ... This is dollars and cents in your pocket."
On the hiring front, he said the company recently brought on three new sales representatives and has a current opening in project management.
And what is his father doing in retirement so far? Besides buying construction equipment that he enjoys as a hobby, "I'd say he's a professional grandpa, having a blast," with his grandkids.
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