PCE Executes ESOP Transaction for Group Sales, Inc.

PCE Investment Bankers, Inc. (PCE), a leading financial services firm specializing in midmarket companies, is excited to announce the recent transition of 100% ownership of Group Sales, Inc. (“Group Sales”) into an Employee Stock Ownership Plan (“ESOP”). PCE served as the exclusive financial adviser to Group Sales.

Established in 1991 and headquartered in Cincinnati, OH, Group Sales has emerged as one of the nation’s premier distributors and fulfillment service providers in the toy industry. The company has built a robust distribution network, catering to a diverse range of charities and retailers including Toys for Tots, Salvation Army, back to school programs, travel centers, and e-commerce platforms.

The Group Sales ownership team initiated the exploration of business transition options several years ago. After weighing various alternatives, they collectively decided that transitioning to an ESOP was the most advantageous route. Their decision was driven by the ESOP's inherent flexibility and the multitude of benefits it offers, including employee engagement and benefits, favorable tax treatment, and overall company welfare. It was the ideal fit for Group Sales’ objectives of 1) Mission Accomplishment and 2) Troop Welfare.

Jason Ernst, President, expressed his gratification with the process, stating, “Our journey with PCE has been exceptionally rewarding and we partnered with them due to their vast knowledge and expertise in structuring and closing a transaction. Their team efficiently navigated through the complexities of this transaction, ensuring a smooth and proficient process. We are immensely grateful for all the leadership, guidance, and execution that Eric Zaleski and the PCE team provided from start to finish in the ESOP transaction.”

PCE guided the ownership and team through the ESOP feasibility study, which provided a road map of their many options. PCE efficiently managed the ESOP transaction process, including structuring the transaction, negotiating with the ESOP trust on behalf of the selling shareholders, and ultimately delivering every desired goal.

Eric reflected on the experience, saying, “The opportunity to collaborate with the Group Sales team was truly extraordinary. From the outset, they had a clear and compelling vision, which greatly facilitated our ability to outline the options and expedite the transaction process. Successfully closing this deal within a tight timeframe was incredibly fulfilling to all parties involved. We look forward to a longstanding relationship with the Group Sales team.”

About Group Sales: Group Sales, Inc., headquartered in Cincinnati, OH, stands as a leading distributor in the nation’s toy and gift sector, servicing a wide array of renowned charities and retailers including back to school programs, travel centers, third-party logistics, e-commerce platforms, and more. The company extends its reach throughout the continental United States. Beyond distribution, Group Sales is also a key player in providing fulfillment services to Internet Retailers, further solidifying its position in the market.