JEFFERSON — Ashtabula County commissioners and Summit County Port Authority have signed a cooperative agreement to allow the Akron-based board to provide financial assistance for Gabriel Performance Products and its employees to purchase the plant.
GPP president Kenneth R. Allen said the project includes forming an Employees Stock Ownership Plan (ESOP) with the current management. The employees intend to buy the real property, buildings and equipment from company owner, William McMinn of Houston, Texas.
McMinn formed Gabriel Performance Products in June 2001 after acquiring the site from Oxidental Chemicals. Allen said the owner is willing to divest his holdings and sell the plant to the ESOP.
Allen said the Summit County Port Authority is partnering with Ohio Department of Development for the issuance of taxable development revenue bonds and capital loans for the plant purchase. The revenue bonds will be issued by Summit CPA under its bonding authority.
SCPA president Christopher Burnham with Allen and company finance director, Robert C. Rader met earlier this month with Ashtabula County officials. Burnham said at the time Summit CPA was asked by ODD to lend its taxable bond program funds to help the Ashtabula-based plant officials in the deal.
This is a one-time agreement signed by the parties for the GPP plant purchase only, commissioners said. There is no county funds involved in the purchase deal.
Burnham said Summit County Port Authority plans to issue $3.5 million in taxable development bonds for the Gabriel plant project purchase. Another approximate $8 million will come from state development department loans.
Burnham explained that the employee-owned Gabriel Performance Products Co. will be responsible for paying back the revenue bonds and loans. He meets Monday with the port authority board for its approval on this project.
Burnham said the next step is for all parties to meet with the ODD Finance Advisory Committee in Columbus. He expects the deal will be closed by the end of October.
GPP has 65 employees with a yearly payroll of $4 million. Forming the ESOP is an opportunity for all employees to help in the future growth of the manufacturing plant, Allen said.
“This will provide long term job retention. Employees will own stock in the plant calculated on individual earnings. We (management) looked at this plan to have control of our own destiny,” Allen said.
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