ESOPS
WHY THEY CAN BE WIN-WIN-WIN
ESOP PROFILE
C ATA L I N A C Y L I N D E R S
COMPANY ORIGINS
In 1965, Philip Keeler founded Aluminum Precision Products (APP). In 1992, APP acquired Catalina Cylinders. Keeler and two of his sons, Gregory and Roark, managed APP and Catalina as family-owned businesses for the next 17 years.
THE DECISION
Richard Hill President & CEO
Philip Keeler passed away in 2009. It had been the Keeler family’s philosophy that the company should transition to the employees versus selling to a competitor or private equity firm, so the company immediately began tran-
sitioning to an ESOP. In 2015, to better align the business with the interests of the employees (90 in California and 160 in Virginia), Catalina Ward Dekker split off as its own Vice President & entity, and the APP General Manager and Catalina ESOP Catalina East plans were separated by company.
autonomously, their ESOP valuations are done separately, which dictates both the ESOP value and the plan retirement value.
FORMULATION
David Silva Vice President of Sales & Marketing Catalina Cylinders & Catalina Composites
Approximately one-third of the business is in the ESOP trust, owned on behalf of the employees. The balance is owned through the Keeler Family Trust headed by the second-generation Keeler brothers. Because the two businesses run
ADMINISTRATION AND COMMUNICATION
The Catalina ESOP is managed by the company’s board of directors and its ESOP Committee. The Committee consists of David Silva (vice president, sales and marketing), Richard Hill (president and CEO) and Ward Dekker (vice president and general manager).
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54 • Spring 2018