Texas Automotive Lift & Equipment Distributor chooses Employees Ownership
By: RBG Capital LLC
ALVARADO, Texas - Feb. 3, 2023 - PRLog -- After 19 years in business, Tuxedo Distributors, Inc, one of the largest importers of automotive repair equipment in North America, is pleased to announce a sale and transition to a 100% Employee-owned company.
"Our employees have been the backbone of this business, and it gives me great joy to see them become owners of the company they have helped build," said Steve Swink, Founder & CEO of Tuxedo Distributors. "The Employee Stock Ownership Plan (ESOP) is a perfect way to reward their hard work and dedication."
Steve & Marg Swink retained RBG Capital (www.rbgcap.com)
An ESOP is a type of employee benefit plan that provides employees with an ownership stake in the company. As a qualified Pension Plan, which owns 100% of S Corporation shares, the Company will not incur Federal or State Income Taxes for as long as the ESOP owns the shares. This provision makes ESOPs particularly attractive as an alternative buyer to Private Equity.
"ESOPs are not a solution for every owner's succession objectives, but when they are a fit there is no stronger transaction strategy out there," shared Michael Walling, Managing Director of RBG Capital. "Through the ESOP, the government becomes the company's financial partner, directing what would have been tax dollars towards paying off the acquisition debt more efficiently."
"On behalf of all the employees at Tuxedo we offer a heart felt thank you to Marg and Steve Swink for their years of dedication and the amazing opportunity they have offered all of their employees," said Leslie Schmidt, President of Tuxedo. "Over the last year, I have come to the conclusion that there is not a finer group of people to work with than these employees. We are excited to start this new opportunity!"
The transaction financing was provided through Comerica Bank. "We are honored to provide senior financing for our longtime customer Tuxedo Distributors,"
Participating in an ESOP program means employees are collectively owners of the company and benefit financially from a job well done. In this way, there is direct incentive for employees to work hard and take even more pride in what they do.
About Tuxedo Distributors
Founded in 2004, Tuxedo Distributors, LLC, is a master importer and leading supplier of high-quality, affordable automotive lifts and other repair equipment and accessories. Tuxedo Distributors is headquartered in Alvarado, TX providing global distribution with focus primarily across the United States and Canada. For more information contact Matt Kahla at 817-558-9337 or firstname.lastname@example.org.
About RBG Capital
Founded in 1986 and headquartered in Scottsdale, AZ, RBG Capital is a wealth advisory and sell-side Investment Bank, representing entrepreneurial business owners throughout the US. For more information, please visit us at www.rbgcap.com or contact Tim sperling, Director of Business Development at email@example.com or 480-386-0309.
Comerica Bank is a subsidiary of Comerica Incorporated, a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Commercial Bank, The Retail Bank and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico. Comerica reported total assets of $85.4 billion as of Dec. 31, 2022
Tim Sperling, Director of Business Development
firstname.lastname@example.org or 480-386-0309