HOOPP and Social Capital Partners Lead Taylor Guitars on Employee Ownership

Posted on 03/17/2021

---

Taylor Guitars was founded in 1974 by Bob Taylor and Kurt Listug and has grown into the leading global builder of premium acoustic guitars. Taylor now employs over 1,200 people and currently produces hundreds of guitars per day in its state-of-the-art factory complexes in both United States (El Cajon, California) and in Mexico (Tecate).

Taylor Guitars has transitioned to 100% employee ownership. Backed by a Canadian pension fund, Healthcare of Ontario Pension Plan (HOOPP) via HOOPP Capital Partners, and Canadian non-profit Social Capital Partners (SCP), this is a landmark transaction where a pension fund has directly financed an employee ownership conversion with a flexible, long-term debt facility.

The transaction was financed with debt from HOOPP, SCP, and the owners themselves.

The US-ESOP is a type of tax-qualified defined contribution plan available in the United States through which all qualified employees receive a retirement benefit linked to Taylor Guitars’ future equity value.