CARPINTERIA, Calif. – Hollandia Produce, L.P., the leading purveyor of living butter lettuce, announced today it is transitioning the Company to become employee-owned by implementing an Employee Stock Ownership Plan (“ESOP”). Pete Overgaag will stay on as Chief Executive Officer (CEO) and assisted by the current executive management team, will remain heavily involved in Company operations through this transition.
Mosaic Capital Partners (“Mosaic”) and Endeavor Structured Equity and Mezzanine Fund (“Endeavor SEAM”) supported this transition by structuring and funding the ESOP. SDR Ventures served as financial advisor and helped Hollandia successfully pursue and complete the ESOP transaction.
Overgaag and his executive team are proud to reward their loyal employees and maintain the Company’s emphasis on tradition and community by providing employees with the ability to share in the success of the business through a significant retirement benefit at no cost to the employee.
CEO Pete Overgaag shared, “I am honored to lead Hollandia through this transition, which will continue our commitment to our customers, employees and company values. Hollandia is well positioned for growth. I am excited our employees will be able to share in our future success.”
Hollandia Produce has enjoyed a history of success, beginning in 1970 when founders Art and Magda Overgaag started the produce company with three acres of greenhouses in Carpinteria, California. Under the leadership of their son and current owner Pete Overgaag, the Company has grown to include two locations, and is now the largest greenhouse grower of hydroponic lettuce in the Western United States. Overgaag’s sisters Ellen Seyle and Karin Connolly are also active in the business.
An ESOP is a qualified retirement plan that invests in the common stock of the sponsoring company and provides eligible employees with an ownership interest in this company. It is intended to share in and drive increased productivity and profitability, and ultimately an increased stock price from which employee owners will directly benefit.
According to the National Center for Employee Ownership (NCEO), approximately 7,000 U.S. companies have an ESOP. Employee ownership promotes an engaged employee base with a vested interest in the performance of the company. The Employee Ownership Foundation 2014 Annual Economic Performance Survey found that 80 percent of respondents saw an increase in the company’s stock value as determined by independent valuations.
About Hollandia Produce
Founded in 1970, Hollandia Produce, L.P. is an ESOP agricultural business specializing in hydroponically greenhouse grown vegetables. With locations in Carpinteria and Oxnard, California, the company grows, ships, and distributes its certified organic label Grower Pete’s, and its Live Gourmet® line of products, which are harvested with their roots intact to preserve freshness. The company’s signature crops, Living Butter Lettuce, Living 3-in-1 Lettuce and Living Red Butter Lettuce are all delivered to market in the company’s award-winning clamshell packaging, which serves as a mini-greenhouse to reduce damage, shrinkage and contaminants. As living plants, these products have exceptional long-lasting freshness that retains flavor and color much longer than comparable varieties in the produce department. For more information, visit: www.hollandiaproduce.com.
Source: Hollandia Produce
