Mainebiz

W W W. M A I N E B I Z . B I Z 9 J U LY 2 7 , 2 0 1 5 GAC Chemical becomes employee-owned GAC Chemical Corp. has joined the ranks of prominent Maine companies such as Cianbro and Sargent Corp. that are owned by their employees. The Searsport- based company announced on July 13 that its founder and owner, James A. Poure, was selling his ownership in the business to GAC's employees by way of an Employee Stock Ownership Plan, or ESOP. "Mr. Poure had come to a decision that he was ready to retire," GAC President and CEO David Colter told Mainebiz in a conference call on July 13. "It was my job to make the transaction happen. The ESOP was the one option that had many benefi ts for both our employees and the owner … The company could have been sold to a competitor or another chemical manufacturer who wanted to gain access to the markets we serve. If that had been the case, the buyer probably would have moved the business out of state and many local, good- paying jobs would have been lost. The ESOP was an attractive alternative, which provided business continuity." Colter said GAC's ESOP was structured by Bellview Associates, a Chicago- based fi nancial advisory and consulting fi rm. In simple terms, an ESOP is a trust that a company sets up on behalf of its employees, into which it directs a portion of its profi ts. The trust uses that money over time to buy the owner's shares. Susan Scherbel, a principal of Bellview Associates who lives in Maine, designed the ESOP structure for GAC. Financial terms of the ESOP, which closed on June 23, were not disclosed. Employees learned about the sale the next day, Colter said. "The reaction of our employees has been extremely positive," Colter said, noting that all employees became vested in the ESOP starting on June 23. "An ESOP is a retirement benefi t plan … what employees are getting is an oppor- tunity to share in the success of the company." The ESOP got key help from the Small Business Administration's Maine District offi ce, which guaranteed 75% of the loan. Bar Harbor Bank & Trust partnered with SBA on the ESOP transaction. "This is one of the largest and most complex transactions the SBA has done in the state of Maine," Deputy Director Diane Sturgeon said. "GAC has been a fi xture in Searsport for more than 20 years. This transac- tion makes it likely the company will be here for at least 20 more," added Steve Gurin, senior vice president of business banking at Bar Harbor Bank & Trust. John Wolanski, vice president of sales and marketing, said GAC is the only company in Maine capable of manufacturing, distributing and warehouse chemicals at one site. Its markets include the pulp and paper industry, power plants, indus- trial manufacturing, agriculture and municipal water and waste water facilities. Poure formed GAC Chemical Corp. in 1979 (then under the name of General Alum & Chemical Corp.) and acquired the Searsport facility in 1994 from Delta Chemical. GAC Chemical is a leading worldwide producer of high-purity ammonium sulfate and a number of industrial, specialty and fi ne chemicals (both organic and inorganic). It received the Maine Governor's Award for Business Excellence in 2014 and was a co-recipient in 2015 of the Maine Foreign Investor Award for partnering with the Mexican company Dalegip Inc. on a specialty chemical manu- facturing joint venture at the Searsport facility. — J a m e s M c C a r t h y P H O T O / DAV I D C O LT E R GAC Chemical Corp. employees acquired the Searsport company through an Employee Stock Ownership Plan, a deal that closed June 23. We combine our knowledge with yours to achieve success. Six Offices in Maine / 207.989.4824 / ces-maine.com / S E N S I B L E S O L U T I O N S Maine lawyers working with Maine municipalities. Por tland / Kennebunk • 207-775-7271 • 1-800-756-1166 • jbgh.com At Jensen Baird, our commitment is to you. With over 60 years experience, it's no wonder that municipalities, counties and school districts across Maine depend on the knowledge of Jensen Baird. We are your trusted source in providing solutions to a broad range of issues. With prompt, practical and cost-effective guidance, our lawyers are regularly recognized as among The Best Lawyers in America.

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