Lifetouch Sells to Shutterfly

Lifetouch, the sixth-largest majority employee-owned company in the U.S., has been sold to Shutterfly for $825 million. The company had over 16,000 participants in its ESOP. Established in 1977, Lifetouch provided billions of dollars in payouts to employees over its existence ($148 million in 2015, for instance) and was one of the most successful and fast-growing ESOPs over most of its history. The company provides photographic services, most notably school pictures, where it is the dominant company. Changes in the market in recent years made its business model more challenging, and with growth slowing, it was more difficult to make the investments it needed. Shutterfly said it planned no layoffs.