Precision Aerospace Parts Manufacturer Values Dedication of Workforce, Becomes 100% Employee-Owned

Overview

Founded in Lebanon, Ohio in 1953, Tomak Precision (“Tomak” or the “Company”) is a family‑led, premier manufacturer of precision‑machined components serving mission-critical sectors including aerospace, power generation, medical devices, hydraulics and machine tools.

With capabilities spanning multi‑axis turning/milling, heat‑treated material machining, Swiss turning/milling, grinding, finishing, and manufacturing engineering, Tomak delivers products under rigorous quality management standards. Company leadership credits the expertise of its machinists and the customer-centric dedication of its front office as key drivers of Tomak’s growth, reputation and seven decades of sustained success.

Situation

In planning his long‑term exit strategy, Tomak’s owner was committed to preserving the Company’s hard‑earned reputation and professional legacy while rewarding the dedicated workforce that contributed to its success. His goals included: a seamless, multi-year transition for the general manager, continued growth across key industry sectors and long-term prosperity and opportunity for employees. A comprehensive transaction analysis determined that a 100% sale to a newly-formed Employee Stock Ownership Plan (ESOP) offered the most effective path to achieving these objectives.

Solution

Tomak partnered with Griffin Financial Group, and its affiliated law firm Stevens & Lee, to structure, finance and implement the new ESOP.

Griffin professionals provided financial due diligence, modelled the ESOP structure, raised financing and negotiated financial terms with the lender. Stevens & Lee attorneys assisted with the sale and prepared transaction-related documents. In addition, the Griffin team helped establish a Stock Appreciation Rights (SAR) Plan to reward future company leaders, navigated complex tax, financial and legal considerations, enabled the seller to defer capital gains taxes under IRC §1042 and completed the transaction on an expedited schedule.

For more information on this transaction, please contact Ken Wanko, Senior Managing Director at 215.285.7190, Jack Freeman, Vice President, at 720.933.8677 or Otis McCullough, Sr. Financial Analyst, at 215.508.5640.