Transition from Family-Owned to Employee-Owned Gives Dennis Food Services’ Owner a Comfortable Exit

Dennis Food Services, a Maine-based food service distributor with deep roots in New England, has always embraced change. Since its beginnings in 1908, when Max Dennis and his brothers immigrated from Russia and started a soft drink bottling company, the business has undergone several transformations—eventually evolving into the thriving food service distributor it is today.

After taking over as President in 2001, Ron Dennis led the company through its final transition, focusing on food service distribution by 2002. But perhaps the most significant shift came in 2015 when Ron faced a decision that would shape the company’s future. His children, though fond of their Maine roots, weren’t interested in taking over the family business. Faced with the reality of stepping away from day-to-day operations, Ron considered his options.

“I had three choices,” Ron recalls. “I could continue running the business until I passed away, I could sell to a national distributor, or I could find a solution that benefited my employees long-term.”

It was at a seminar in Boston that Ron discovered his ideal path forward: an Employee Stock Ownership Plan (ESOP). This option offered a unique opportunity to reward his loyal employees while ensuring the company’s independence and legacy.

To guide him through the ESOP process, Ron teamed up with Bellview Associates. Bellview’s comprehensive expertise made what initially seemed like a confusing process much easier for Ron to navigate. Their role was pivotal in crafting a seamless transition, ensuring the ESOP was executed successfully and that the company’s financial future was secured.

“Working with Bellview Associates was a pleasure,” says Ron. “The ESOP was foreign to me at first, but they were the key ingredient for my financial success. I would work with them again in a heartbeat.”

The benefits of the ESOP quickly became evident. By moving to employee ownership, Ron found a way to reward the people who had been instrumental in the company’s success. Employees at all levels—from warehouse supervisors to truck drivers—became part of something bigger. Today, the Dennis Food Services website proudly declares, “A 100% EMPLOYEE OWNED COMPANY,” reflecting the pride that comes with their collective ownership.

Ron believes this transition not only strengthened the business internally but also resonated with customers. “Our customers always valued our independent, family-owned story,” says Ron. “When they learn that the business was sold to the employees, it only enhances their trust in us.”

Now, nearly a decade after the ESOP was implemented, Dennis Food Services is thriving. The company boasts 175 employee-owners, each of whom has a stake in the business’s success. Thanks to the ESOP, employees’ financial portfolios have continued to grow as the company’s stock price increases year over year. For long-time employees already enrolled in the company’s 401k, the ESOP presented an additional, unexpected reward, as they were automatically vested in the program.

“That was basically a gift to them,” says Ron, noting the sense of pride and high morale among staff. “They’re happy because their investment grows in value every year.”

For Ron, the decision to transition to an ESOP allowed him to maintain his family’s legacy while ensuring the company’s future was in good hands. Dennis Food Services continues to expand in Maine and New Hampshire, with plans to hire top management talent as it grows.

Thanks to Bellview Associates’ expert guidance, the ESOP has proven to be more than just a financial transaction—it’s a pathway to long-term stability and growth for both the company and its employee-owners.