Absolute Machine Tools has been sold to, and is now owned by, an Employee Stock Ownership Trust (ESOP).
Owners Steve and Courtney Ortner sold 100 per cent of their ownership interest to a newly created ESOP, allowing current and future employees to gain a beneficial ownership interest in the company without any personal monetary investment.
In a statement, the company said the ESOP was developed “to give back to Absolute Machine Tools’ employees and recognize that they are the drivers of the company’s success.”
Steve Ortner will continue to be president and CEO, managing sales and the company’s day to day operations. As part of the new structure the Ortners formed several new departmental strategic planning committees and a Board of Directors. These two internal entities will help to influence future financial and growth decisions for the company.
“The formation of Absolute’s ESOP is intended to preserve outstanding customer service through increased productivity and sense of ownership, eliminate income tax obligations to federal and state governments allowing for reinvestment of cash back into the company for future growth opportunities, and retain and recruit top talent,” the company said in a statement.