(Fairfield, IA) – Dexter Apache Holdings, Inc., an Iowa based company with diverse interests in manufacturing, financial services and distribution has acquired 100% of the interests of Crystal Group, Inc. headquartered in Hiawatha, Iowa. Structured as a 100 percent employee-owned private company, or an “S corporation employee stock ownership plan” (S ESOP), Dexter Apache Holdings credits its success to its employee-owners who operate with a vested interest in the company’s growth and development. Crystal workers will also become employee owners through the acquisition.
“We are extremely pleased to have Crystal Group, Inc. join our family of companies and the ownership culture we have here at Dexter Apache,” said Patrick D. Albregts, President and CEO of Dexter Apache Holdings, Inc. “Crystal will serve as an important growth engine for Dexter Apache Holdings and allow us to leverage a number of important synergies between our companies while adding further diversification to our business.”
Founded in 1987 by Craig Jensen, Crystal is a leading manufacturer of information technology hardware for high impact, demanding environments including the military. Among the “rugged” products offered by Crystal are servers, storage devices, displays and integration hardware. In addition to the military, Crystal serves the telecommunications industry and numerous other industries where highly reliable and durable technology products are required. Jensen, Chairman and CEO will retire from the business and Scott Kongable, President of Crystal will continue to lead the business. Crystal will remain headquartered in Hiawatha.
Jensen commented, “I am very happy to have partnered with Dexter Apache Holdings as it will allow all Crystal employees to become owners in the business and ensure that Crystal remains a vibrant and successful part of the Hiawatha business community.”
According to a University of Pennsylvania study, S ESOP companies like Dexter Apache create not only employee motivation and success, but also $14 billion in new savings and retirement security for workers that they otherwise would not have. This is because profits of the company flow into the ESOP (retirement) accounts of the workers. Moreover, most S ESOP employees have retirement account balances three to five times higher than the average 401 (k) or other defined contribution plans. This helps to explain why S ESOP owners like those at Dexter Apache are so successful, as compared with most working Americans who—an April 2011 Gallup poll found—think they will lack enough money to live comfortably in retirement.
“Dexter Apache is a prime example of what S corporation ESOP companies can do for their workers and for our economy,” said Greg Klein, chairman of the board of directors of the Employee-Owned S Corporations of America. “Employee-owners work smarter and harder because of their commitment and investment in the business, and the result is growth as we have seen today.”
Dexter Apache Holdings, Inc. was founded in 1894 as The Dexter Company in Dexter, Iowa, and currently is headquartered in Fairfield, Iowa. In addition to Crystal, Dexter Apache Holdings, Inc. owns five other businesses. Dexter Laundry, Inc. is located in Fairfield, Iowa and is a leading manufacturer of commercial laundry equipment for self service laundromats, hotels, motels, hospitals, universities and care giving facilities. Leer, Inc. is headquartered in New Lisbon, Wisconsin and is a leading manufacturer of ice merchandisers and walk in freezers and coolers. Apache Stainless Equipment Corporation is located in Beaver Dam, Wisconsin and provides stainless steel tanks and food processing equipment to a variety of industries. Dexter Financial Services, Inc. is located in Cedar Rapids, Iowa and is a full service provider of financial products for Dexter Laundry customers. Century Laundry Distributing, Inc. also located in Cedar Rapids, distributes commercial laundry equipment primarily in Iowa, Nebraska, Minnesota and North and South Dakota.
The Employee-Owned S Corporations of America (“ESCA”) is the Washington, DC voice for employee-owned S corporations. ESCA’s exclusive mission is to preserve and protect S corporation ESOPs and the benefits they provide to the employees who own them. These companies have an important story to tell policymakers about the tremendous success of the S ESOP structure in generating long-term retirement savings for working Americans and their families. ESCA provides the vehicle and the voice for these efforts. ESCA represents employee-owners in every state in the nation.