Blue Heron Paper Now Employee-Owned

Blue Heron Paper in Oregon City, Oregon, is now 100% owned by its ESOP. The company is one of a small number of companies where an ESOP was used to rescue a plant from closing. KPS Special Situations Fund, an investment banking fund that provides equity for employee buyouts, bought 65% of the company from Smurfit, its former owner, is 2000. The Blue Heron ESOP bought another 35%. The company has succeeded, buying additional assets from Smurfit in 2005. Now KPS has sold its interest back to the ESOP, yielding a 500% return for its investors.