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Sullivan Tire Shifts Gears
Auto Service Chain Transitions to Employee Ownership with ESOP Deal
Earlier this month, Robert D. Sullivan and Paul Sullivan, the current owners of Sullivan Tire, announced their decision to transfer ownership of the family-owned auto service chain to employees through an Employee Stock Ownership Plan (ESOP). This strategic move aims to enhance the existing benefits for the company’s workforce.
Here is some background on the auto service! Sullivan Tire and Auto Service, headquartered in Norwell, MA stands as a prominent hub for automotive and commercial truck care in New England. With 75 retail locations, 15 commercial truck centers, 14 wholesale satellite locations, and more. The business was established by Robert J. Sullivan in 1955, and has evolved into a regional leader with about 1500 employees and 79 retail outlets throughout New England.
The Sullivan brothers view their employees as an integral part of the company’s extended family, and they hope that the move to employee ownership will preserve the firm’s culture. Through the ESOP initiative, employees will accrue company stocks based on their years of service and performance evaluations. As reported by The Boston Globe, employees who remain with the company until the years end will be inducted and granted a stake in the company. After a tenure of six years, they will have the option to redeem their shares upon retirement or at age 65.