On January 1st, 2020, Loftness Specialized Equipment, an agricultural equipment manufacturer based in Hector, MN, became 100% employee-owned, and in doing so, reconfirmed its longstanding commitment to the town of Hector and the community who helped make the company what it is today.
Dick Loftness started the company that would eventually become Loftness Specialized Equipment in 1956, building snowblowers in his farm workshop in Hector. He made his first sales to his neighbors in Hector. When his operation grew too big to handle alone, he hired other farmers from Hector to help him out. One of those local farmers, Marv Nelson, eventually bought the company from him, and later passed it on to his wife and children.
Formed in 1956, Loftness Specialized Equipment is now 100-percent employee owned through its ESOP
Every time the company outgrew its location, they took pains to find a new one in Hector, even if it meant building a new location from scratch. Over the years, Loftness grew from a one-person operation making snowblowers to a major job creator in Hector manufacturing multiple lines of specialized products, and the people of Hector have helped it become a beloved name in the agriculture industry.
So when the Nelson family began thinking about their transition plans, what were they going to do—sell to some outside conglomerate that would eliminate the workforce and move operations out of Hector to some factory out of state or overseas? Of course not. They sold full control to an ESOP, ensuring that Loftness would remain a part of Hector for years to come.
“Our employees, as well as the entire community of Hector, mean very much to us, so we’re excited to present them with this new opportunity to take ownership in the company,” said Loftness president and CFO Gloria Nelson.
Now, when a dealer or a customer purchases a Loftness grain bagger or crop shredder, or one of the snow blowers that descended from the ones Dick Loftness created in his workshop back in 1956, they will have the confidence that comes from knowing that it was designed and manufactured by people who have a ownership stake in the Loftness legacy, and in the pride of place that comes with it.
Would your business be the same without the community that supports it? Contact Menke & Associates today to learn how an ESOP can help keep your company local—and keep it thriving.
Menke & Associates, Inc. has helped over 3,500 companies successfully transition to employee ownership. Our holistic ESOP approach enables a positive outcome for the company, its employees and its shareholders. We believe ownership is powerful
