In a world of depressing news I’m loving this M&A story from Minden, Louisiana: Fibrebond sells to Eaton for $1.7B.1
Acquisition headlines usually focus on valuations - 10x or bust - but the focus of this story is on the CEO’s gift to line all workers. He directed 15% of the $1.7 billion purchase price ($240,000,000) to 540 employees (the total headcount). Many of these employees earn as little as $7.25 per hour (minimum wage).
Mean acquisition bonus = $443,000
That can be life-changing money if invested wisely.
The Walker Family’s approach is what capitalism is all about.
Community-wealth building tales such as Eaton-acq.-Fibrebond are rare. I feel excited to know it can and does still happen in such ⛹🏼♀️ style. The acquisition happened in April, over eight months ago, but we are finding out now because hard news doesn’t cover stories like this. Fibrebond’s is a Long Lede story.
The brilliance of this strategy goes deeper than altruism. By structuring the payments over a five-year vest, the outgoing CEO cleverly aligned incentives for buyer, seller, and employees.
For the buyer, the costs of managing ESPP’s are offset by a workforce that has reason to stay, perform, and support a transition rather than leave the company or be skeptical of the new owners. For employees, while the payout is not unconditional, it does guarantee gifted rewards with continued employment and productivity; more stability and motivation to keep succeeding. For the seller, gifting a quarter‑billion dollars still leaves them more than materially wealthy, while also cementing a legacy in their small town of 10,000 people: Minden, LA.
Keep in mind that what’s happened here is different than when employee’s realize equity value upon sale. In this case this is an unexpected profit share that was 100% discretionary.
Because the beneficiaries largely live in Minden and spend locally, it becomes a community windfall . The value recirculation can strengthen local tax bases and even civil infrastructure; people like investing in happy people.
Private and pubic equity financiers always include retention bonuses and change-of-control payments for executives. The Fibrebond Method goes further by removing a moral asymmetry between who is protected in an acquisition and who is not.
Perhaps boards and acquirers should begin asking: does our acquisition approach to human capital create incentives consistent with long-term community creation?
I wonder what Brad Jacobs thinks of this? If you know him, please send this to him. 🙏🏽
Deals structured to distribute meaningful proceeds to employees could change public attitudes toward private wealth. Large liquidations that visibly benefit entire communities can challenge narratives that associate entrepreneurial exits solely with founder windfalls and inequity.
Capitalism can be compatible with inclusive distribution strategies
As we can see, deals can be structured to reinforce local economies and social cohesion. Ultimately, the Fibrebond example shows a path where the seller capitalized on capitalist incentives AND designed a transaction that recognized the mutually reinforcing interests of founder, buyer, and employee.
This kind of design thinking…
… blends economics, ethics, and practical incentive structures.
And it deserves more attention. Smart business and better human stewardship.
Music: Bust It Open by Cool Company
The transaction closed in April 2025 but the story was published on Christmas Eve - feel good vibes.
