Employee owned since 2019
KKW TRUCKING IS 100% EMPLOYEE-OWNED THROUGH AN EMPLOYEE STOCK OWNERSHIP PLAN (ESOP)
KKW Trucking, Inc. and its affiliates have completed a transaction to become 100% employee-owned through its newly-created Employee Stock Ownership Plan (or “ESOP”). The Company was founded in 1962 in Los Angeles, CA and today it operates out of its 91,000 square foot facility on 9 acres in Pomona, CA to provide transportation services, including irregular route truckload services for world-class manufacturers, retailers and consumer packaged goods companies throughout 12 western states. The Company operates 120 local, 265 sleeper tractors and more than 1,300 trailers.
State Of The Company October 2020
Message From Dennis Firestone
- An ESOP is formally known as an employee stock ownership plan a qualified retirement plan like a profit sharing plan that that is required to invest in employer stock
There are two key differences between ESOPs and 401(k) plans. First, an ESOP invests primarily in an employer’s stock rather than “Wall Street” investments. While a 401(k) plan generally offers various mutual funds in which employees may invest funds. Second, 401(k) plans permit employees to contribute their own money into the plan, while ESOP contributions are entirely company funded and there is no employee contribution. The entry provisions are also different.
The price of the stock in an ESOP is typically determined on an annual basis by an independent valuation company working in conjunction with the plan’s trustee. The value is based on many factors, including the company’s current and projected performance, the performance of similar publicly traded companies, the outlook for the industry and the geography within which the company operates, and the overall economic outlook.
Contributions for each plan year are allocated to participants who have worked at least 1,000 hours for the plan year and who are still employed by the company on the last day of the plan year –December 31st or have terminated employment during the plan year on account of Death, permanent Disability, or after reaching the normal Retirement date (age 65). On the basis of eligible compensation.
An ESOP account balance will usually change only once per year. Employees will receive an annual statement that provides the financial activity for the year, including the updated stock value. Your individual account will grow based on annual company contributions, forfeitures and increased value of the company.
KKW Manangment will continue to make the day-to-day decision making, and hiring and firing decisions. The ESOP does not guarantee employment at the company. Only in special circumstances will there be a pass through vote to the participants.
Yes, distributions are generally paid in equal annual installments over 5 years. If termination is on account of Death, permanent Disability, or Normal Retirement (age 65) payments commence by the end of the 1st plan year following year of termination. If termination is for any other reason, payments commence no later than the 6th plan year following the year of termination.
Employees are not required to sign up to be part of ESOP. However to be a participant you must be 21 or older with one year of service with 250 hours. Annually participants must work 1,000 hours in each plan year to earn shares. Employees are advised to complete a beneficiary form to ensure benefits are paid to the designated beneficiary.
Announcement & Press Release
FOR IMMEDIATE RELEASE
Contact: Dennis Firestone, CEO
November 20, 2019
Phone: (909) 869-1201
KKW Trucking Becomes 100% Employee-Owned Through an Employee Stock Ownership Plan (ESOP)
After 57 years of significant expansion and growth, KKW Trucking opens its next chapter
POMONA, CA: KKW Trucking, Inc. and its affiliates have completed a transaction to become 100% employee-owned through its newly-created Employee Stock Ownership Plan (or “ESOP”). The Company was founded in 1962 in Los Angeles, CA and today it operates out of its 91,000 square foot facility on 9 acres in Pomona, CA to provide transportation services, including irregular route truckload services for world-class manufacturers, retailers, and consumer packaged goods companies throughout 12 western states. The Company operates 120 local, 265 sleeper tractors and more than 1,300 trailers.
According to Dennis Firestone, CEO, “Building this Company from 9 trucks that worked out of a 6,000 sq. ft. cross dock into what we have become over the last 52 years has been very gratifying experience indeed. The reality is that KKW Trucking was built by a team of hard-working committed men and women, and if I was to get any credit for our successful journey then it would only be that I was able to recruit and train most of these amazing individuals. The time has come for me to step aside, and the thought of turning our Company over to the very people that helped me build it, is a dream come true. I truly believe that when the notion sinks in that each of our team members are truly owners and they realize that they will directly benefit from their extra efforts, then the sky becomes our only limit. I couldn’t come up with a better way to say ‘thank you’.”
Dennis Firestone has held the title of President for 52 years and will now become Chairman of the Board with Steve Benninghoff replacing him as CEO and Lynnette Brown continuing on with her role as CFO. Steve and Lynnette have groomed a successful management team and Dennis admits “It’s time to let this young yet well-seasoned team take the reins and transport this new company to a whole new level”
After fifty-seven years of significant expansion and growth, all of the ownership of KKW Trucking has transferred to a qualified retirement plan, specifically an ESOP. All eligible employees will be credited with shares of Company stock within the ESOP trust each year at no cost, allowing them to earn ownership and accumulate tax-deferred retirement wealth through their service. KKW Trucking joins a group of elite employee-owned transportation companies such as the Paladin Capital companies, TMC Transportation, Big G Express, J&R Schugel, and Wheaton, to name a few.
KKW Trucking, Inc. was advised by Ambrose Advisors, a national investment banking firm specialized in employee-ownership transitions. Michael Harden, Senior Managing Director with Ambrose Advisors, stated, “Dennis’s goal was to secure a sustainable future for KKW Trucking in a way that would be highly beneficial to the employees, customers, vendors, and the community in addition to himself. Employee ownership, done right, benefits all stakeholders and should be celebrated. It is a true win/win transaction for all parties involved and we were pleased to be a part. We heartily congratulate the KKW Trucking team and thank them for trusting Ambrose Advisors to manage this ownership transition process.”
About: KKW Trucking, Inc. operates a trucking transportation business serving customers in 12 western states. http://www.kkwtrucks.com
About: Ambrose Advisors is a national middle-market investment bank and financial advisory firm focused on guiding and assisting business owners with ownership succession planning, primarily through employee ownership. http://www.AmbroseAdvisors.com