Cresco Food Technologies now employee-owned

WOODBURY - AVEKA Group, Inc., the parent company of Cresco Food Technologies, announced that as of Oct. 15, 2019 it became an S Corporation ESOP

AVEKA is a contract manufacturing and research and development company based in Woodbury, Minn., with sites in Fredericksburg, Cresco and Waukon in Iowa and Cottage Grove and Hastings in Minnesota.

In the transaction, prior investors sold 100% of their ownership interest to a newly created Employee Stock Ownership Trust, allowing current and future employees to gain a beneficial ownership interest in the company. 

Effectively, the ESOP is a qualified retirement plan which, based on company performance, could generate significant retirement benefits for AVEKA Group’s approximately 280 employee owners.

Commenting on the announcement, Dr. Willie Hendrickson, CEO and Founder of AVEKA, said, “It’s amazing to see the company after 25 years and what better than to reward the employees with a larger stake in the company. At the end of the day, the employees are what has made AVEKA the place to go for powder processing.”

Marie Jorissen, President of AVEKA Group, who will continue in her current position, also noted, “Becoming an ESOP will give our employees a financial interest in the success of the business and make the bonds between employees even stronger. Today, we are a robust competitor and leader in the powder processing industry, based primarily on our innovation-driven culture that places safety, customer service and quality at the top of our priority list. 

“Delivering unparalleled service requires great employees, who are focused and dedicated to the business at hand. That clearly describes our team, and we are thrilled to be able to provide this benefit to them.”

Hendrickson, who will also continue in his current position, noted: “An ESOP is an attractive way in which to assure the continuation of our top-notch customer service model, help retain and attract valued employees, and enhance our overall productivity and profitability.

“We expect the ESOP to increase the retirement security of our Employee Owners, particularly as we continue on the growth path we have enjoyed over the last 25 years.”

AVEKA Group, Inc. specializes in contract manufacturing of particulate materials for the chemical, food, personal care, automotive, microelectronic and agricultural markets. It has a wide variety of unit operations that range from spray drying, milling, screening and blending.