Blooming Nursery in Cornelius, Oregon, is being purchased by its employees through an employee stock ownership program, or ESOP, owner Grace Dinsdale said.
Dinsdale, who founded the 42-acre wholesale nursery in 1982, said she’s been thinking about how to conduct a transition for years. She’s just been looking for the right way to do it. “It’s been very hard to figure out what it was going to look like and how to get there,” she said.
Dinsdale listed the nursery with Falco/Sult, a broker in Seattle, and received several offers. “I was hoping the sale would be to a like-minded person who would run it the same way and share my ideals and passions,” Dinsdale said. One of the offers was from Apis & Heritage Capital, an investment fund that finances the conversion of companies into employee-owned businesses.
“I was approached by this group and was really excited,” Dinsdale said. “It’s a big transition for employees to understand how to run the business. Apis & Heritage conducts training for the new employee-owners to help them learn how to run the business, and they provide support for them to be successful.
“What I liked about this primarily, is they will be right here with the employees for the first 5 years.” she said. Apis & Heritage will have two seats on the board and offer business guidance and training to the employee owners. “They’re going to help us transition. That’s what made me most excited about it.
Dinsdale did not include Blooming Junction, a retail nursery she also founded, in the sale.
Blooming Nursery has about 70 employees year-round and the number swells to about 115 during peak growing season. The nursery focuses on herbaceous perennials, annuals, groundcovers, herbs, ornamental grasses, shrubs and vines.
“We have a very specialized clientele and product here, and it would have been difficult to find a buyer that understood what we do and the value of it,” Dinsdale said. “This way the nursery will stay with the same team. It’s very much a community here.”
Dinsdale is currently doing a search for two people to lead the nursery. “I’m interviewing now and I’ll be training them and will be here until they know the ropes,” she said.
“Everyone who works here more than 1,000 hours a year will be distributed ownership shares through an ESOP each year. They earn shares based on how much money they make and how many hours they work.” she said. “H-2A workers will also have ownership..”
The transition began in December when the deal became final, and she announced it to her staff on December 7. “The response was overwhelmingly positive,” she said. “People were grateful and excited.”
“I was surprised,” said José Carlos Gonzalez, field and dispatch manager. “I think it’s a great idea and I’m excited.”
“I think it’s wonderful,” said James Szadek, who just started in May as sales manager. “This is really an exciting opportunity for me to help move the company forward and be a part of the ownership team. I feel so fortunate to be a part of this.”
“Our employee-led buyout will not only protect Blooming’s role in its community and in the marketplace for the long term, but it will also enable the hardworking employees who have made it thrive benefit from that success,” said Phil Reeves, founder and managing partner of Apis & Heritage.
Financing was provided for the transaction in part by AgWest Farm Credit. “AgWest joined this transaction with us quickly, and their involvement demonstrated their deep knowledge of farming and farmers,” said Reeves. “We look forward to a great partnership for Blooming Nursery.”