Trinity Logistics, Seaford, has announced the formation of an Employee Stock Ownership Plan (ESOP). An ESOP now owns 33 percent of the company.
Trinity is a third party logistics provider that matches shipments to shippers. It does not own a tractor-trailer fleet.
CEO, Jeff Banning made the announcement last week through live video to the company’s sites around the nation.
Banning stated that as the family discussed their options of succession planning, it was clear to all of them that the best path for the 38-year-old company was launch an ESOP.
The ownership plan is also designed to build on the company’s culture, which includes teamwork and community service.
The company was started by Jeff’s parents Ed and Deana Banning and has grown to more than 200 employees.
A company blog also stated that 84 percent of ESOP companies have seen improved motivation and productivity.
Trinity has Regional Service Centers in Missouri, Iowa, Minnesota, and Texas as well as an office in New Castle.
In a letter, the Banning family said, “We stand in awe of what can be accomplished in the power of 38 years of Serving First. Thank you again for taking this journey with us. We look forward to many more years of working together, serving our industry and our communities while taking care of one another in what we consider a culture standing on a strong foundation, a culture of trust and caring.
ESOPs are relatively rare in Delaware, with suburban Philadelphia-based convenience store chain Wawa the largest ESOP employer operating in the First State.
Redner’s, a Reading, PA-based supermarket chain that operates stores in central and southern Delaware, also has an employee ownership program.
Another employee-owned company is air-conditioning and heating service company Service Today, which has offices in Delaware, Maryland and Pennsylvania.
ESOPs are sometimes launched when the company’s principals are nearing retirement. A blog entry from Trinity stated that the family plans to continue managing the company.