Southerland Selling Company to Employees

Posted by MCC on March 16th, 2010 at 07:00am

Southerland, an independent bedding producer has announced plans to sell the company to it’s employees. The sale will go through an Employee Stock Ownership plan that will be led by a new executive team. While the terms of the pending sell weren’t disclosed, the deal is expected to be closed by the end of this month. At which time the employees will own 100 percent of the company.

The company’s new management team includes two co-presidents, Steve Russo and David Corbin and Bryan Smith the current company president. Once the new leadership structure is in place, Smith will be the company’s executive vice president and the chief financial officer. Smith has been with Southerland for 12 years and has over 20 years of experience in managerial accounting.

The new management team will bring strong marketing disciplines to the company and instill a consumer focused approach to the development of products. Plans also include utilizing lean manufacturing practices, strategic sourcing, a diversified brand portfolio and employing consumer panels to test new products.

Corbin said that one of the keys to the success of the company will be the employee owners. Studies have shown that companies that are owned by the employees have a significant advantage over companies that are traditionally owned in sales per employee. The new structure will result in additional incentives such as an exceptional retirement plan and tax efficiencies.

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