Employees purchasing Tulsa pharmacy chain
As he moved closer to retirement, there were no shortages of
offers for Deril Lees’ three compounding-only pharmacies in the Tulsa,
Okla.-area. But Lees’ feared that many of the prospective buyers would close The
Apothecary Shoppe, scattering his long-time employees, which include numerous
family members, at his two Tulsa locations and the one in Broken Arrow.
“What would happen to my employees?” he recalled repeated asking
himself. “All of them are top of the line? What would [the new buyer] do to the
store?”
Instead of selling to an outside interest, Lees decided to create
an employee stock ownership plan (ESOP) that transfers ownership from Lees to
his employees. Under typical ESOPs, company shares are allocated to individual
employee accounts. Allocations are made either on the basis of pay or some other
formula. Employees’ shares become fully vested within three to six years.
Initially, a loan is taken out to pay off the owner, and then profits from the
business are used to repay the loan. Mosaic Capital Partners, a Charlotte, N.C.
investment firm, helped create the ESOP.
Lees believes the ESOP was the perfect solution. “Every customer
is so critical to our business and our employees handle it that way,” Lees said.
“We wanted to reward them for that effort.”
Lees’ son, Deril Jr., will serve as CEO of the business. However,
he and several of his relatives will be partners in the business.
“I was very excited about the plan,” the younger Lees said. “It
was our goal to reward our employees for the growth that they are responsible
for.”
Lees started the business in 1995. He began working in pharmacy in
1980 at a grocery store before eventually opening his own pharmacy. Over the
years, he said the Apothecary Shoppe has become a place where employees are on a
first-name basis with customers.
“We have a great customer base,” the younger Lees sad. “Our
employees know our customers. When they walk through the door, [the employees]
head to the back and start working filling the prescription.”
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