Congratulations to Blythe Development Corp. on celebrating its first anniversary as an employee-owned company!
Founded in 1921 in Charlotte, North Carolina, Blythe has a long and storied history. Originally established to build roads and highways, the company quickly took on ambitious projects, including the construction of Camp Lejeune Marine Corps Base, airfields in North Africa, and the first launch pad at what is now Cape Canaveral. By the mid-1980s, Blythe Industries had become a major highway and heavy civil contractor in the Carolinas, employing more than 900 people.
In 1986, the company was co-owned by four descendants of the original founders, with brothers Jack and Frank Blythe actively involved in its operations. Due to the complexities of divided ownership, and with only two siblings directly engaged in the business, the company was sold to Alfred McAlpine Construction, a British firm. This transition unfortunately altered the company’s culture, prompting Jack and Frank to eventually step away.
After honoring their non-compete agreements, the brothers launched a new venture: Blythe Development. Initially focused on golf course and greenway projects throughout the 1990s, the company steadily grew. By 2010, it had expanded into heavy civil construction, taking on bridges, interchanges, and highways. Most recently, Blythe Development was awarded its largest project to date — a major highway reconstruction in Mooresville, North Carolina.
A Vision for the Future: Succession Planning
As Jack and Frank approached retirement, they began evaluating succession options, including selling to a private equity firm or through a business broker. While financial security was important, preserving the company’s culture, caring for its employees, and keeping the business in the family—now into the fourth generation—were top priorities.
Their long-standing relationship with Josh Goldblatt, a former banker who had joined Lazear Capital, an ESOP advisory firm, proved instrumental. Josh recommended transitioning to an Employee Stock Ownership Plan (ESOP), a structure that met all their goals while also offering substantial tax benefits.
The ESOP Transition
On April 1, 2024, Blythe Development proudly announced its conversion to a 100% employee-owned company. According to President Luke Blythe, great-grandson of the founder, the announcement was met with “shock and awe” from employees. The transition ensures that the company remains locally owned, while giving every employee the opportunity to share in the company’s growth and success.
In an industry facing hiring challenges, the ESOP model gives Blythe a competitive advantage in attracting and retaining top talent. It also allows leadership to focus on growth and innovation without the lingering questions of succession or ownership transfer.
Financial Benefits to ESOP Conversion
As a 100% S-Corporation ESOP, Blythe is exempt from federal and state income taxes. This financial structure enables the company to make business decisions based on operational needs rather than tax planning. “We no longer face end-of-year pressure to buy equipment just to lower our tax liability,” notes Joey Dodson, Vice President and CFO. “Now, we buy or lease based solely on project requirements.”
Additionally, with the company utilizing the Percentage of Completion method for project accounting, concerns about tax implications related to project estimates have been significantly reduced. The continuity of local ownership also means Blythe can continue working with its trusted advisors and partners, including its bonding company, which fully supported the ESOP transition.
Looking Forward
Blythe Development is committed to educating its employee-owners about the ESOP and what it means for their future. Recently, employees received their first annual ESOP statements, reflecting their retirement account balances after just one year — with no personal financial contribution required.
Luke, Joey, and the leadership team continue to engage employees on how their ideas and innovations directly impact the company’s success — and their own financial futures. It’s a powerful message: when the company wins, everyone wins.
The future is bright for Blythe Development — a company with a proud legacy, a dedicated workforce, and a renewed sense of shared purpose.
Blythe development website: www.blythe.us
Do you have questions about Employee Ownership and whether an ESOP, Employee Owned Trust or a Cooperative might suit your business needs and objectives? The North Carolina Employee Ownership Center is a nonprofit organization that provides free guidance to business owners and their trusted advisors.
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