Heavy-highway contractor George & Lynch is converting to partial employee ownership.
President Chris Baker announced that employees will own 30% of the Dover-based company when the change is complete.
“Like all excellent employees, our workers have other options, and we are grateful for their efforts and dedication that have made this company what it is today,” Baker said. “We hope that this ownership change both recognizes their hard work and helps promote retention and improve recruitment.”
The transition to an Employee Stock Ownership Plan, or ESOP, and the purchase of existing shareholders’ stock will occur over several years.
As existing shareholders approach retirement, Baker said they recognized a need to plan for the ownership transition. The plan also provides an additional long-term retirement benefit and incentive to all eligible employees. Company management will not change. Baker and all existing employee-owners will continue to work in the business.
The company is known for its highway and bridgework, new-home construction site work, underground utilities, and paving projects.
The 98-year-old company George & Lynch was based for many years in New Castle but later moved its headquarters to Dover. The company does much of its work in central and southern Delaware and adjacent areas of Maryland.
George & Lynch has facilities in both Milton and Gumboro in Sussex County.
The company also shares ownership of three hot mix asphalt manufacturing plants located in Kent and Sussex counties. George & Lynch has nearly 200 employees.
Delaware has five ESOP companies with more than 9,000 employees. The best known is W.L. Gore and Associates, Newark. United Electric, a wholesaler based in New Castle, has 100% of its stock owned by employees. One of the nation’s largest ESOP companies is convenience store-gas station owner Wawa, based in neighboring Delaware County, PA.