Mainely Tubs joins the growing roster of Maine ESOPs
Photo / Tim Greenway
Former Mainely Tubs owner Jim Van Fleet, pictured in 2016 after converting the company to employee ownership.
Mainely Tubs in Scarborough became the latest Maine company to convert ownership to an Employee Stock Ownership Plan, the owner said Thursday.
Jim Van Fleet, 68, who bought the business in 1993, will remain CEO for the foreseeable future, he said, adding that he has no plans to retire.
Mainely Tubs is now 100% owned by its 39 employees. It expects sales this year of $10.5 million.
As recently as June 2015, when the company was profiled in Mainebiz, it was expecting annual sales of $7.5 million.
“This is a gift to the people who made this possible,” Van Fleet told Mainebiz. “[An ESOP] allows an owner to give back and it costs employees nothing.”
The company was founded in 1978, and in 1993, when Van Fleet bought the company, had just two employees on a 700-square-foot site in Portland’s Bayside neighborhood. By 2004, under Van Fleet’s watch, it became the largest volume store dealer for the HotSpring Spa network, selling 888 hot tubs. It has held that distinction since. The company moved into larger quarters in 2015.
Van Fleet said he’s been laying the groundwork for succession for the past five years. The senior management team also includes Diana Locke, general manager and chief operating officer; Scott Bell, who oversees finance, IT and marketing; and Richard Hyde, operations manager.
The ESOP was facilitated by Machias Savings Bank, which financed the transaction, with roles held by other local businesses. Spinnaker Trust in Portland will oversee the retirement trust. BerryDunn, the Portland accounting firm, served as an advisor in the transaction.
“The staff culture and extraordinary customer service of Mainely Tubs is so similar to that of Machias Savings that we felt our participation would be a win/win for both companies,” said Machias Savings President Larry Barker. “We were also very impressed by the company’s financial performance as it has experienced a compound annual growth rate of 6 to 7 times the rate at which GDP has grown since 2009.”
Maine has a long list of companies that have converted to an ESOP structure, including Landry/French Construction, GAC Chemical, Sargent Corp. and Cianbro, to name just a few.
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