Louisiana
Fibrebond employees get $240M in bonuses as part of billion-dollar sale of north LA company
Christmas came early for the employees of Minden’s Fibrebond.
This spring, the family-owned company that got its start in 1982 sold for $1.4 billion to Eaton, a multinational corporation headquartered in Dublin, Ireland.
The Shreveport-Bossier City Advocate has confirmed that an important part of the deal was bonuses for Fibrebond’s 540 employees.
Fifteen percent of the company’s sales proceeds were to go to Fibrebond employees.
As employees are told of their bonuses, courtesy Fibrebond’s sales agreement with Eaton.
The bonuses varied depending on the length of employment, but according to The Wall Street Journal, the average bonus was $443,000 to be paid over five years as long as the employees continued working for that time.
The WSJ says employees with more seniority received even more.
When the Shreveport Bossier Advocate asked about the bonuses, Eaton responded, “As a general practice, we do not discuss the terms of our M&A transactions. However, for the Fibrebond acquisition specifically, we came to an agreement with this second-generation, family-owned business that honors their commitments to their employees and the community.”
Graham Walker, president and CEO of Fibrebond, speaks during a event to announce an expansion by the company at its site in Minden, La., Thursday, April 18, 2024.
“Close to a quarter-billion dollars in employees’ hands felt fair,” Graham Walker, former Fibrebond CEO, told the Journal.
According to the WSJ, employees began receiving their bonuses in June. They have paid for homes, opened businesses, taken trips, paid college tuition and added to retirement accounts.
“Some spent it on day one, maybe even night number one,” said Walker. “Ultimately, it’s their decision good or bad.”