Macfadden Becomes a 100 Percent Employee-Owned Company

Wednesday, 28 March 2007

 E-mail | Print 

Macfadden and Associates, Inc. (Macfadden), a privately held professional services company providing humanitarian disaster assistance, integrated information technology and program management services and support, announced today that its Employee Stock Ownership Plan (ESOP) Trust has acquired 100 percent of the outstanding shares of Macfadden. Former President and founder, Jim Macfadden stepped down and sold his remaining company stock to the employees of Macfadden effective March 28, 2007.

Macfadden's ESOP was initially established in 2004 when Jim Macfadden transferred 35 percent of Macfadden's stock equity to employees in preparation for a planned exit from the company. Russell E. Hall, Chief Executive Officer, has been named president, and a new Board of Directors will be seated immediately.

"At Macfadden, we believe that the employee-ownership culture provides our hard-working team members with the motivation to truly fulfill our mission of delivering results and exceeding the expectations of our customers," said Mr. Hall. "Macfadden values our employees and our ESOP affords our staff the opportunity to make positive contributions to the company while growing their own shareholder wealth."

Macfadden will be holding its annual shareholder meeting on Thursday, May 17, 2007 to discuss the impact of the change in ownership and the strategic direction of the company. During the past several months Macfadden has been awarded several contracts for new initiatives and renewed contracts for several long-term customers. "We are excited about the future of Macfadden and the opportunities for growth that exist in the near future," said Mr. Hall. "There is no better way for a company to be successful than providing its employees with a stake in what they do each and every day. A culture of employee ownership provides our employee-owners with a culture of collaboration that drives innovation."