Sullivan Tire sells itself to employees, dodging private equity consolidators

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Sullivan Tire sells itself to employees, dodging private equity consolidators
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The 68-year-old tire retailer and service company has over 100 locations.

Share on linkedin Sullivan Tire, a Massachusetts-based tire retail and service chain with over 100 locations, has been sold by its founding family to its employees.

This is a rare case in which a company turned down takeover offers from industry consolidators, including those backed by private equity, in order to enrich its workers.The deal is being transacted via a newly formed Employee Stock Ownership Plan , and includes Sullivan Tire's real estate.Sullivan Tire's nearly 1,500 employees will have a six-year vest, without having to contribute any of their own cash, and can redeem at retirement . It does not impact 401 plans.

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