Vermont Aerospace becomes 100 percent employee-owned

Vermont Aerospace Manufacturing, Inc, has announced that it has been sold to its employees through an Employee Stock Ownership Plan (ESOP). Company owners Don and Sheryl Cota decided to create the ESOP as a way to reward employees for their years of service and to insure that the business would stay in the area. The announcement was made at a celebration at the company’s headquarters in Lyndonville on November 9th. Guests included Senator Bernard Sanders and Don Jamison of the Vermont Employee Ownership Center.
‘This year marks Vermont Aerospace’s 30th year in business, and this was accomplished because of the dedication and hard work of our employees,’ says Don Cota, president of Vermont Aerospace. ‘Sheryl and I were looking for a way to provide our employees with stability, opportunity, and a vehicle that would allow sharing of company profits.’
The Cotas learned about ESOPs from the Vermont Employee Ownership Center (VEOC), a nonprofit organization that provides education and technical assistance to businesses that could benefit from selling some or all of the company to its employees. ‘After one meeting with the folks at the VEOC, we were convinced that an ESOP met our requirements,’ Cota explains.
‘It’s wonderful that Vermont Aerospace has been sold to the employees,’ says Jon Crystal, Executive Director of the VEOC. ‘This new ownership structure will help keep Vermont Aerospace in the Northeast Kingdom, thereby securing hundreds of jobs in an area of the state that has seen more than its share of job losses.’
‘The ESOP is a tremendous opportunity for all the employees that work at Vermont Aerospace,’ says Jeremy Ely, the company’s general manager. ‘I hope that everyone at Vermont Aerospace will take advantage of this opportunity to make the organization and themselves more secure for years to come.’
The company joins a growing list of 100% employee-owned businesses in Vermont. They include such well-known companies as King Arthur Flour, Gardener’s Supply, Carris Reels, Pizzagalli Construction, and Resource Systems Group.
About Vermont Aerospace Manufacturing, Inc.
Vermont Aerospace is an ISO9001:2008 & AS9100 certified manufacturer for aerospace and defense companies. The company employs over 200 highly skilled machinists, engineers, fabrication, and support personnel in two facilities in the northeast region of Vermont. For more information, visit www.vtaerospace.com.
Vermont Aerospace’s Don and Sheryl Cota
Don and Sheryl Cota are native Vermonters and have resided in the Northeast Kingdom for most of their lives. They are residents of Lyndonville, as are their three grown children and one grandchild.
Don has worked in the manufacturing sector since the age of sixteen and was one of the first employees of Vermont Aerospace (originally named Bi-Tec Industries, and then Whitcraft North). He and his brother, Scott Cota purchased the company in 1998. Then in 1999, Vermont Fabrications was incorporated and owned by their wives, Sheryl and Diane Cota.
Sheryl had been a teacher for sixteen years prior to her co-ownership of this company. Don and Sheryl purchased the two companies in May of 2008. They merged the companies to become one corporation, Vermont Aerospace. Due to their strong commitment to their community and employees, they decided their succession plan would consist of selling the company to their employees in September 2010.
Vermont Aerospace offers more competitive wages and benefits than most other companies in the area, and its employees are highly skilled. The company has coordinated with VMEC for workforce training in the following areas: Lean Manufacturing, Set-up reduction, and 5S.
About the Vermont Employee Ownership Center
The VEOC is a nonprofit organization that works directly with owners interested in selling their business to their employees, employee groups interested in purchasing a business, and entrepreneurs who wish to start a company with broadly-shared ownership. For more information, visit www.veoc.org.
Source: Vermont Aerospace. 11.12.2010