Congrats, Clif Bar! Its Sale To Mondelez Boosts Our View That This Is ‘The ESOP Decade’


My heartiest and heartfelt congratulations to Clif Bar & Corporate and its staff on their landmark settlement to promote to Mondelēz Global! The herbal power, diet and snack bar maker – 20% owned by way of its staff – offered itself for $2.9 billion, with further earnout chances.

Clif Bar and Gary Erickson and Equipment Crawford, its husband-and-wife house owners and co-Leader Visionary Officials, had been our pals for over a dozen years. I used to be privileged to paintings with Clif Bar once they established a 20% ESOP plan in Spring 2010 in the course of the sale of family-owned not unusual inventory and feature maintained ties ever since.

The predicted acquisition of Clif Bar and different primary employee-ownership tendencies persuade me that my statement over a 12 months in the past is materializing that this this can be “The Decade of the ESOP.”

Because the coronavirus pandemic started, now we have noticed a upward thrust in worker possession. This has been buoyed by way of PE companies, led by way of world funding large KKR & CO, and Lengthy Level Capital, amongst others, the usage of a broad-based worker engagement type that, for KKR specifically, seeks to make each and every employee in a U.S. producer it acquires a player within the luck of the corporate they paintings for.

We’re seeing a rising selection of states organising state ESOP facilities to assist family-owned and different firms protected some great benefits of employee-ownership. And final December, after Congress acted to make 100% ESOPs eligible for sole-source follow-on executive contracts, President Biden signed into regulation the first-ever executive contracting program to particularly inspire ESOPs. The regulation additionally dedicates price range to beef up training about worker possession. (That Jared Bernstein, a long-time recommend for worker possession, is now a member of the White Area Council of Financial Advisors most likely helped enact this landmark law.)

As for Clif Bar, when it introduced the ESOP program, Equipment defined that Gary and she or he “sought after to create an organization the place we’d wish to paintings. She added, “Worker possession is yet another approach lets run a unique roughly industry: person who conjures up a crew of other folks to make the type of scrumptious, nutritious meals we’d love to devour, and that strives for a more healthy, extra sustainable global.”

Cliff Bar’s tradition, values and a basis of 5 distinct aspirations underscore how vital Clif Bar puts worker possession and participation. Its aspirations – involving Other folks, Planet, Neighborhood, Industry and Logo – are convincingly defined and illuminated within the corporate’s 2020 annual record, Let’s Transfer the International, that may excite any viewer.

We’re excited for Clif Bar’s worker house owners (whose unique 20% possession suggests a $580 million “praise” from the Mondelez acquire) and we will be able to be eagerly gazing them write their subsequent bankruptcy on a world platform.

As I’ve asserted prior to, worker possession provides a “win-win-win.” You get the tradition and engagement – and also you get the ideas and concepts from people who find themselves at the line and dealing. With those particular elements you already know results prior to now inconceivable.

Bravo, Clif Bar! And congratulations Mondelez on securing some other iconic emblem.



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