{"id":3685,"date":"2018-10-24T10:24:04","date_gmt":"2018-10-24T14:24:04","guid":{"rendered":"https:\/\/www.stevenslee.com\/sesesop\/?post_type=transaction&#038;p=3685"},"modified":"2026-07-31T09:25:36","modified_gmt":"2026-07-31T13:25:36","slug":"redners-markets-inc","status":"publish","type":"transaction","link":"https:\/\/www.stevenslee.com\/sesesop\/outcome\/redners-markets-inc\/","title":{"rendered":"Redner&#8217;s: Supermarket Chain Bolsters Long-Term ESOP Sustainability"},"content":{"rendered":"<h1><span data-teams=\"true\">Redner&#8217;s: Supermarket Chain Bolsters Long-Term ESOP Sustainabili<\/span>ty<\/h1>\n<p><strong>Overview<\/strong><\/p>\n<p><a href=\"https:\/\/www.rednersmarkets.com\" target=\"_blank\" rel=\"noopener\">Redner\u2019s Markets, Inc.<\/a> (Redner\u2019s or the Company), headquartered in Blandon, Pennsylvania, was founded in March 1970 by Earl Redner. The Company is primarily a discount supermarket offering dry groceries, perishables, frozen foods, health and beauty aids and general merchandise. Redner\u2019s currently owns and operates 44 supermarkets, 19 convenience stores that also include gasoline pump service, three gas stations with limited product sales, eight pharmacies, and two distribution centers.<\/p>\n<p>On December 21, 1975, the Company formed its original employee stock ownership plan (ESOP). As of December 31, 2017, the ESOP owned approximately 48.1 percent of the Company.<\/p>\n<p><strong>Situation<\/strong><\/p>\n<p>Although the ESOP has sufficient liquidity to honor distribution, diversification and repurchase obligations in the near future, Redner\u2019s management realized that such obligations would exceed ESOP liquidity over the medium term. In light of competitive pressure in the supermarket space, a significant amount of the Company\u2019s free cash flows would be required to satisfy distribution, diversification and repurchase obligations. This in turn would constrain the Company\u2019s ability to grow and imperil the long-term sustainability of the ESOP as a meaningful employee benefit.<\/p>\n<p><strong>Solution<\/strong><\/p>\n<p>SES professionals, along with ESOP professionals from its affiliate, Griffin Financial Group, were engaged to complete an analysis to explore strategic alternatives to manage the repurchase liability of the ESOP while also satisfying the following goals:<\/p>\n<ul>\n<li>Maintain the ESOP as a long-term meaningful employee benefit<\/li>\n<li>Manage the ESOP\u2019s repurchase liability in a financially efficient manner that will give the Company the best opportunity to continue investing in its long term-growth and sustainability<\/li>\n<li>Maintain meaningful family ownership for the fourth generation<\/li>\n<\/ul>\n<p>We worked closely with Principal Financial Group, the ESOP\u2019s third-party administrative services provider, to model the impact various structuring alternatives would have on the ESOP\u2019s repurchase liability. SES professionals integrated the repurchase liability analysis into the Company\u2019s longer-term corporate financial statements to show the pro-forma effect on the Company\u2019s income statement, balance sheet and statement of cash flows. This enabled the Company\u2019s board of directors to better understand the impact various strategic alternatives would have on the ESOP and the Company\u2019s long-term sustainability.<\/p>\n<p>After reviewing the various alternatives with SES, the Company ultimately decided that deploying a repurchase obligation strategy that includes a combination of annual contributions and redemptions best satisfies the Company\u2019s goals and objectives. Michael McNaney, the Company\u2019s Vice President of Finance, said, \u201cThe analysis provided by SES gave us the information we needed to implement a repurchase strategy that is optimally designed to continue the long-term sustainability of both the Company and the ESOP.\u201d<\/p>\n<p>For more information on this transaction, contact\u00a0<a href=\"mailto:mark.russell@sesesop.com\">Mark Russell<\/a>\u00a0at 817.566.1013 or\u00a0<a href=\"http:\/\/mailto@ecr@sesesop.com\">Ed Renenger<\/a>\u00a0at\u00a0610.478.2238.<\/p>\n","protected":false},"featured_media":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"_exactmetrics_skip_tracking":false},"categories":[],"tags":[],"class_list":["post-3685","transaction","type-transaction","status-publish","format-standard","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Redner&#039;s: Supermarket Chain Bolsters Long-Term ESOP Sustainability - SES ESOP Strategies<\/title>\n<meta name=\"description\" content=\"Waldron engaged SES ESOP Strategies, along with its affiliated law firm,\u00a0Stevens &amp; Lee, to structure the new ESOP plan and guide the Company through the transaction process.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.stevenslee.com\/sesesop\/outcome\/redners-markets-inc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Redner&#039;s: Supermarket Chain Bolsters Long-Term ESOP Sustainability - SES ESOP Strategies\" \/>\n<meta property=\"og:description\" content=\"Waldron engaged SES ESOP Strategies, along with its affiliated law firm,\u00a0Stevens &amp; Lee, to structure the new ESOP plan and guide the Company through the transaction process.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.stevenslee.com\/sesesop\/outcome\/redners-markets-inc\/\" \/>\n<meta property=\"og:site_name\" content=\"SES ESOP Strategies\" \/>\n<meta property=\"article:modified_time\" content=\"2026-07-31T13:25:36+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.stevenslee.com\\\/sesesop\\\/outcome\\\/redners-markets-inc\\\/\",\"url\":\"https:\\\/\\\/www.stevenslee.com\\\/sesesop\\\/outcome\\\/redners-markets-inc\\\/\",\"name\":\"Redner's: Supermarket Chain Bolsters Long-Term ESOP Sustainability - SES ESOP Strategies\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.stevenslee.com\\\/sesesop\\\/#website\"},\"datePublished\":\"2018-10-24T14:24:04+00:00\",\"dateModified\":\"2026-07-31T13:25:36+00:00\",\"description\":\"Waldron engaged SES ESOP Strategies, along with its affiliated law firm,\u00a0Stevens & Lee, to structure the new ESOP plan and guide the Company through the transaction process.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.stevenslee.com\\\/sesesop\\\/outcome\\\/redners-markets-inc\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.stevenslee.com\\\/sesesop\\\/outcome\\\/redners-markets-inc\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.stevenslee.com\\\/sesesop\\\/outcome\\\/redners-markets-inc\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.stevenslee.com\\\/sesesop\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Transactions\",\"item\":\"https:\\\/\\\/www.stevenslee.com\\\/sesesop\\\/transaction\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Redner&#8217;s: Supermarket Chain Bolsters Long-Term ESOP Sustainability\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.stevenslee.com\\\/sesesop\\\/#website\",\"url\":\"https:\\\/\\\/www.stevenslee.com\\\/sesesop\\\/\",\"name\":\"Griffin Financial Group\",\"description\":\"TAILORED ESOP SOLUTIONS. 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