900 workers will share a $75 million pot after KKR sale — with some getting $325,000 windfalls
Business Wire
- GeoStabilization International will share a $75 million pot with workers following its sale by KKR.
- About 900 staff will get payments of up to $325,000 following the sale.
- A KKR executive promotes Ownership Works, which calls for workers to get stakes in their companies.
The private equity industry has had a PR problem, facing accusations of greed and elitism — but some firms are now trying to do something about that.
KKR, one of the biggest players, is selling a company called GeoStabilization International to Leonard Green & Partners.
It will share $75 million of the proceeds with about 900 staff, mainly construction workers, at the geohazard mitigation and road safety services provider, KKR said.
Depending on their role and tenure, those who joined GeoStabilization before last December will get payments of between three months of annual salary to more than three years. The longest-serving staff will get about $325,000.
KKR is also offering personal financial coaching and tax preparation services to workers.
Pete Stavros, its global cohead of private equity, has shown a commitment to offering equity to staff. In April 2022, he launched Ownership Works, a nonprofit that promotes giving workers a stake in the businesses they work for.
GeoStabilization was a "prime example of what ownership cultures can accomplish within the services sector and speaks to the power of an engaged workforce," Stavros said in a press release.
Sales often trigger bonuses for senior management, but KKR has made similar awards to nearly 110,000 blue-collar employees in 50 companies since 2011.
However, the sum being given to staff is less than 10% of the deal's reported $1 billion total.
The sale gives KKR a return of five times the equity it invested in December 2018 and reflects a near-tripling of revenue and profits in that period.