Daijiworld Media Network - Minden
Minden, Jun 22: A small-town family-owned company in the United States has created headlines after selling its electrical-equipment business for $1.7 billion and sharing a massive portion of the proceeds with its employees.
Fibrebond, a Minden, Louisiana-based manufacturer of electrical equipment enclosures, was sold to power-management company Eaton Corporation after 43 years under the ownership of the Walker family.
Former Fibrebond CEO Graham Walker ensured that a special condition was included in the deal — 15 per cent of the sale proceeds would go to employees, despite none of the 540 full-time workers owning shares in the company.
The employee payout amounted to around $240 million, with each worker receiving an average of nearly $443,000.
The bonuses began reaching employees in June and will be distributed over a five-year retention period. Workers must continue with the company to receive the full amount, while employees above 65 years of age were allowed to retire without waiting.
Several employees described the moment as unbelievable, with some comparing the experience to winning a lottery. Business-development executive Hector Moreno said the announcement felt "surreal" as workers opened their letters revealing the unexpected rewards.
Fibrebond was founded in 1982 by Graham Walker’s father Claud Walker, initially producing structures for telephone and electrical equipment. The company faced major setbacks, including a factory fire in 1998 and the impact of the dot-com crash, which reduced its workforce significantly.
The company later recovered after investing about $150 million in data-centre infrastructure. Rising demand from cloud computing, artificial intelligence projects and LNG export facilities helped fuel rapid growth, with sales increasing nearly 400 per cent over five years.
The employee payouts have already changed lives. Long-time worker Lesia Key, who joined the company in 1995 earning $5.35 per hour, used the money to clear her mortgage and start a clothing boutique. Retiree Hong Blackwell purchased a Toyota Tacoma for her husband, while Moreno took 25 family members on a holiday to Cancún.
Graham Walker stepped down as CEO on December 31. His family reportedly earned more than $1 billion from the sale, while ensuring that the employees who helped build the company shared in its success.