Chartwell is pleased to announce SME Industries, Inc., a leading, full-service steel fabrication and erection company, has transitioned ownership to an Employee Stock Ownership Plan (“ESOP”). Following decades of independent ownership, the shareholders of SME explored ownership transition alternatives that would preserve its legacy and elected to sell to an ESOP to reward its employees for their ongoing and future contributions.
Chartwell acted as exclusive financial advisor to SME for the 100% ESOP sale transaction and provided capital markets services through the placement of transaction financing with a syndicate of lenders. Chartwell presented multiple transaction scenarios to determine the optimal ESOP ownership transition structure, while enabling the business to maintain its culture, governance, and identity post-closing. Chartwell also worked with SME to secure a new surety provider and increase bonding capacity in conjunction with the transaction. Additionally, Chartwell helped align the company’s executive compensation plan with business performance, implementing a long-term incentive plan with retention mechanisms and other incentives for select management.
“Forming our ESOP was one of the most significant decisions in our company’s history, and having Chartwell by our side made all the difference. Their deep expertise in ESOP structuring, combined with their hands-on approach and unwavering commitment to serving the best interests of all stakeholders, gave us complete confidence throughout every stage of the process. Chartwell turned a complex transaction into a clear path forward, and we could not have asked for a better advisor during this important transition.”
– Mark Wilkey, General Counsel, SME
About SME
Headquartered in Salt Lake City, Utah, SME Industries is a full-service steel fabrication and erection company. SME specializes in large-scale, high-complexity structural steel projects across transportation, commercial, industrial, sports and entertainment, data centers, hospitality and gaming, healthcare, and education industries. It is also recognized as the industry standard in seismic protection through the development and production of its seismic-resistant bracing system. SME employs over 1,500 employees and is supported by five strategically located plants across the Western United States.
Chartwell Contact
For additional information on this transaction, please contact Wil Becker. For additional information on the capital raise, please contact Ryan Rassin. To learn more about Chartwell’s corporate finance capabilities, connect with Greg Fresh.