An IPO with an Employee Ownership Twist

On Friday, May 12, Gardener Denver, a 6000-person industrial firm based in Milwaukee, WI, went public. On the same day that its stock started trading on the New York Stock Exchange, the employees also learned that they were becoming owners. Employees in the U.S., Europe, Australia, China, Africa, India, and South America will receive deferred stock units, in some cases worth up to 40% of their annual compensation. The private equity firm KKR bought Gardener Denver in 2013 and remains the majority owner following the IPO. On its opening day, the stock was up 5.5%; and as we write this note, it's up 10% over its opening price.