KCI Sells to ESOP

KCI is making its dedicated workforce the new owners of the company by transitioning to an Employee Stock Ownership Plan. The decision comes with KCI’s desire to safeguard its unique culture and values.

KCI Construction Company, a trusted name in the construction industry with over a century of experience, proudly announces its transition to an Employee Stock Ownership Plan (ESOP), making its dedicated workforce the new owners of the company. This exciting change reflects KCI’s commitment to ensuring the company’s legacy of quality and service continues to thrive for generations to come.

Founded in 1922 as a carpentry construction firm under the name Kloster Company, KCI Construction has a rich history of growth and innovation while delivering top-quality construction projects across Missouri. What began as a small family business focused on schools, churches, and single-family homes has since evolved into a premier general contractor with expertise in hospitals, highways, bridges, and heavy concrete work.

The decision to transition to an ESOP is rooted in KCI’s desire to safeguard its unique culture and values. The current owners wanted to make sure there is a solid succession plan. According to KCI President Tom Huster, “We’ve got a great company culture that we’ve worked hard to build, and our hope is that becoming employee-owned ensures that KCI’s culture is enhanced with our employees being more deeply invested in the company’s success.”

With this move, KCI remains committed to the same operational excellence and high standards that have driven its success for over 100 years. The current leadership and day to day operations will not change. However, now the ESOP will not only protect the company’s legacy but also empower its employees, offering them a vested interest in the future of KCI.

KCI joins 182 other companies in Missouri as an ESOP, which combined hold more than $10.7B in plan assets. In the most recent years Missouri ESOPs paid out $808M in benefits.

The Benefits of Employee Ownership

The shift to an ESOP comes with significant advantages, including:

Employee Empowerment: Employees gain ownership in the company, allowing them to build their future wealth as the company grows.
Operational Stability: Day-to-day operations will continue seamlessly, ensuring consistent service for clients and partners.
Long-Term Independence: The ESOP ensures that KCI remains independent, preserving the culture and identity that have been integral to its success.
Financial Efficiency: ESOP companies enjoy tax efficiencies, which will further strengthen the financial stability of KCI.
Legacy Preservation: KCI’s transition to an ESOP ensures that the company’s legacy of quality, innovation, and community involvement endures for years to come.

Chief Operating Officer Brent Krueger emphasized the cultural importance of the move: “Our teammates already approach their roles from an owner’s perspective. This move solidifies that mindset and reinforces our collective commitment to quality and safety.”

While the ESOP transition addresses the need for a solid succession plan, it also positions KCI for future growth. As Huster expressed, “We’ve been around for 100 years, and this move intends to help set ourselves up for another 100 years of success.”

From its humble beginnings as Kloster Company to its rebranding as KCI Construction, the company has continually adapted to meet the changing needs of its clients and the communities it serves. Today, KCI offers a full range of construction services, from self-performed carpentry and concrete work to sewer, heavy concrete, and bridge construction. The company has built a reputation as a trusted partner, working as a general contractor, construction manager, and design-builder on diverse projects across Missouri.

As KCI embarks on this exciting new chapter, the company remains steadfast in its mission to deliver excellence in construction while fostering a sense of shared success among its employees. “Our biggest hope is that employees will feel like they’re working toward a common goal,” said Huster. “Everyone making decisions that affect the bottom line and KCI’s success.”

KCI partnered with Executive Financial Services (EFS), SCJ Fiduciary Services, Polsinelli Law Firm, and FORVIS Mazars to make the transition to an ESOP possible.