On April 24, 2006 Rob Johnston, Jr., Founder and Owner of Johnny’s Selected Seeds, and his wife, Janika Eckert, announced a 10-year plan to transfer ownership of the company to the employees. Today, employees have officially purchased thirty percent of the company.

The stock sale is structured as a trust, specifically an Employee Stock Ownership Plan (ESOP). The plan consists of purchasing shares of Johnny’s in three blocks, at three-year intervals. The first purchase of thirty percent of Johnny’s stock was made on November 6, 2006. Funds for the purchase are a combination of cash from the company and money borrowed from Bangor Savings Bank to be paid back over a period of three years. The next purchase is planned for July 1, 2009, resulting in employees owning a majority two-thirds share of the company. The final purchase is scheduled for July 1, 2012. Company stock will be allocated to employees annually as borrowed funds are paid back.

The ICA Group, a national not-for-profit organization, provided consulting for the establishment of the ESOP.

When asked about the overall experience of making the first payment and thirty percent purchase, Bill Gallagher, Director of Operations and Chief Financial Officer at Johnny’s Selected Seeds said, “It was truly a cooperative effort. We couldn’t have completed this first stage without the superb guidance of Jim Megson, our ESOP consultant at ICA Group; Keith Gunning at Bangor Savings Bank; our appraiser, Howard Gordon Associates; Johnny’s legal team contact, Alton Stevens of Marden, Dubord, Bernier, & Stevens; and the cooperation and support of Johnny’s employees.”

Bill Gallagher and Johnny’s General Manager, Mike Comer, encourage companies or individuals interested in ESOPs to visit the web site of the National Center for Employee Ownership (nceo.org) for educational information as well as the web site of The ESOP Association (esopassociation.org), which provides legal, regulatory, and policy information. “There is no one-size-fits-all with regard to ESOPs,” says Mike Comer, “Every business needs to decide what will work best for itself and its employees.” Bill Gallagher and Mike Comer both agree on one very important point: “Find a good consultant with significant experience, don’t be intimidated by the initial costs, and by all means don’t go it alone.”

Johnny's Selected Seeds provides quality vegetable, herb, and flower seeds, spring-flowering bulbs, berry plants, cover crop and farm seed, as well as tools and supplies, to commercial growers and home gardeners. An independent company since 1973, Johnny’s prides itself on its superior product, research, technical information, and customer service. All of Johnny’s seeds and accessories are thoroughly tested at the company’s certified organic farm in Albion, Maine and are backed by a 100% satisfaction guarantee. For more information, visit us at http://www.johnnyseeds.com or contact our Marketing and Public Relations Office at (207) 861-3900 or publicrelations@johnnyseeds.com.