Century-old Twin City Die Castings sold to employees

Castings firm latest to go to worker-owners

Owner Douglas Harmon is selling his stock to employees of Twin City Die Castings (TCDC), under an Employee Stock Ownership Plan (ESOP).

"I've worked with the TCDC executive team to come up with a plan that includes all of you as the new owners of TCDC, through an Employee Stock Ownership Plan," Harmon told the nearly 250 employees in December, according to a company statement. "Through the years I've seen how you have dedicated yourself to our company and customers. I'm excited for you to directly benefit from our future success."

Sales Director Samir Mesanovic said the full-service aluminum and magnesium die castings provider has been family-owned for nearly 100 years.

After 41 years with the company, Harmon will sell over several years to the employee retirement plan.

Harmon plans to remain indefinitely as chairman of the company and work with an independent trustee established to represent the employee-owners as the rest of his stock is acquired.

The company did not disclose a sale price. A bank loan will be used to partly fund the deal, on top of cash flow.

Todd Olson, chief financial officer who has succeeded Harmon as chief executive, said an ESOP was selected as the best way for the company to maintain its family culture. ESOP experts said they are the best way to spread wealth into the ranks, on top of good pay and benefits.

The most successful ESOPs are financed conservatively and involve growing, profitable companies.

As TCDC grows profitably, the employee-owners should see their shares in the ESOP grow, Olson said. That should mean they will have more money saved for their retirement, as they cash out of the ESOP when they leave the company.

Neal St. Anthony

Holiday stores, which in December sold its fuel-and-food business to a larger Canada-based operator of convenience stores, will sell 10 of its Minnesota and Wisconsin outlets to preserve competition in those markets, under an order approving the transaction by the Federal Trade Commission.

The FTC's settlement with the Canadian operator "preserves competition in 10 local markets within the Minnesota cities of Aitkin, Hibbing, Minnetonka, Mora, St. Paul and St. Peter; and Hayward, Siren, and Spooner in Wisconsin.

Without the divestitures, the FTC alleged, the acquisition would likely lessen competition, leading to higher retail prices in these towns.

Under the terms of the acquisition, Couche-Tard acquired 522 Holiday retail-fuel outlets in 10 states.

The transaction, which has yet to be disclosed by the publicly held Canadian firm, has been estimated by analysts to be worth more than $1.5 billion.

Bloomington-based Holiday was started 90 years ago by Arthur and Alfred Erickson, with a rural Minnesota general store and gas station.

AchieveMpls — the nonprofit support arm that advances post-graduation readiness in the Minneapolis Public Schools — is thanking its business supporters.

The beleaguered, deficit-burdened school district struggles with declining enrollment as private and charter schools take promising students. It manages an increasingly low-income student population that needs high levels of remedial work, social services and special education.

AchieveMpls CEO Danielle Grant recently thanked Accenture, Best Buy and U.S. Bank for their "extraordinary commitment" over several years, including financial support for in-school programs, internships, job opportunities and consulting with school leaders. More than 50 businesses in all were cited for their assistance in 2017.

Grant said: "Strong community partnerships lead to increased student achievement, enhanced social capital and a greater likelihood of graduation and career success. It's inspiring to collaborate with community partners … so committed to offering time, talent and treasure for the benefit of our entire community."

The foundation of Minnetonka-based Cargill long has been the single-largest business donor to AchieveMpls. Grant also thanked the Otto Bremer Foundation, Pohlad Foundation, General Mills, Wells Fargo and other multiyear supporters.

More information: www.achievempls.org