For almost 50 years, B and B Maintenance’s full- and part-time workers have provided cleaning and other services for government, education, healthcare and other commercial facilities in 20 US states. Apis & Heritage is financing an employee-led buyout, through which all of B and B’s workers will become owners under an employee stock ownership plan, or ESOP.
The transaction represents A&H’s largest deal to date, more than doubling the roughly 400 worker-owners of its other five portfolio companies (see, “Apis & Heritage aims to help business owners ‘exit responsibly’ – to their employees”). “More workers, more wealth,” A&H’s Tobi Adewodu told ImpactAlpha. “We always get excited about having more workers in ESOPs.”
Neatland Holdings, a facility maintenance investment firm, will exit its investment in B and B, but two of Neatland’s executives, Daniel Ik-Obazee and Terry Cooley, will take on management roles at B and B.
“We believe that employee ownership will empower our workforce and drive long-term success for everyone involved,” said Ik-Obazee.
Ownership culture
A&H says it plans to work closely with B and B’s management and new employee-owners, using its ownership culture framework to “strengthen the company’s culture of efficiency, resiliency and respect.”
A&H has brought on Melissa Hoover from the Democracy at Work Institute to lead its ownership culture strategy. B and B joins the portfolio of A&H’s first $58.1 million fund. The firm expects to close its second fund this month.
