NOW Health Group Rejects Buyouts, Gives 30% Ownership to Employees

BLOOMINGDALE, IL – January 07, 2026 – In a strategic move designed to secure its future and preserve its identity, NOW Health Group (NHG) today announced it will transition a significant portion of the company into the hands of its workforce. The family-owned natural products manufacturer will implement an Employee Stock Ownership Plan (ESOP), transferring approximately 30% of its shares to its more than 1,800 employees across North America.

This decision marks a pivotal moment for the nearly 60-year-old company, which has grown from a small, family-run operation into a global leader in dietary supplements, natural foods, and personal care products. Rather than pursuing a lucrative sale to outside investors or competitors, the Richard family is doubling down on the people who helped build their enterprise. The move ensures the company remains privately owned, with a combination of family and employee stakeholders guiding its future.

“We receive numerous calls to sell our company, but we have worked too long and too hard to build this business, and that was not an acceptable option,” stated Chief Executive Officer Jim Emme. “We realized several years ago that we would eventually need a plan to transfer the ownership and management of the business to the next generation, or we would risk seeing our business either sold or possibly fail.”

Preserving a Legacy, Rejecting the Buyout

Founded in 1968 by chemist Elwood Richard, NOW was built on the principle that high-quality, natural health products should be affordable and accessible. This mission, coupled with a deep-seated belief in the “Golden Rule,” created a corporate culture that prioritized quality, integrity, and people over short-term profits. The decision to establish an ESOP is a direct reflection of that founding ethos.

For years, the Richard family and company leadership have navigated the challenge of succession—a common hurdle for successful family-owned businesses. The ESOP provides a definitive answer, creating a stable path forward that sidesteps the risks of an external sale, which could have led to operational changes, workforce reductions, or a departure from the company’s core mission. Emme emphasized this point, noting that a sale was not an “acceptable option” after decades of dedicated work.

By choosing employee ownership, NHG is fortifying its commitment to the local communities, such as Bloomingdale, where it is a major employer. This structure is designed to reward the workforce that has driven its significant sales growth over the past decade, turning dedicated employees into direct beneficiaries of the company's continued success.

The Mechanics of Employee Ownership

An ESOP is a federally regulated retirement benefit plan that allows employees to gain an ownership stake in their company. For NOW employees, this transition comes at no personal cost. The press release confirms that the share transfer will be funded entirely by corporate earnings, meaning employees will not be investing their own money. Instead, eligible employees will receive shares over time, which accumulate in a retirement account.

While specific details of NOW's plan will be communicated internally, ESOPs generally follow established structures. Employees typically must meet eligibility requirements, such as age and hours of service. Their ownership stake then vests over a set period, often following a three-year “cliff” or a six-year graduated schedule. Upon retiring or leaving the company, the employee receives the cash value of their vested shares, which the company is legally obligated to buy back at a fair market value determined by an annual independent appraisal.

This model offers significant financial advantages. For employees, it provides a powerful, tax-deferred wealth-building tool in addition to other retirement plans. For the company, contributions to the ESOP are tax-deductible. This can free up substantial cash flow, which can be reinvested into innovation, infrastructure, and further growth, creating a virtuous cycle of success that benefits all stakeholders.

A Growing Trend in Corporate Succession

NOW Health Group is not alone in its adoption of employee ownership. The company joins a growing movement of approximately 7,000 ESOPs in the United States, according to the ESOP Association. This model has become an increasingly popular solution for the “silver tsunami” of retiring business owners looking for an exit strategy that preserves their company's culture and legacy.

The manufacturing sector, in particular, has the highest concentration of ESOPs in the nation, making NOW's move a logical fit. The natural products industry also has notable precedents, with successful companies like Bob's Red Mill, CLIF Bar, and KeHE Distributors having already demonstrated the power of employee ownership. These companies often report higher productivity, lower employee turnover, and greater resilience during economic downturns.

As CEO Jim Emme commented, “Our company is part of a growing trend of successful businesses opting to use ownership to position themselves for ongoing future success.” He noted that the Richard family had long intended to give back to employees through such a plan, and the timing was finally right. “This outcome allows us to continue moving forward strongly based on the core values that have always guided our business – transparency, clear communication, community, and business success built by our employees.”

Fostering an Ownership Culture

Beyond the financial benefits, the ESOP is a strategic investment in NOW Health Group's most valuable asset: its people. The shift is expected to foster a powerful “ownership culture,” where employees are more engaged, innovative, and motivated because they have a direct stake in the company’s performance. This aligns with research showing that employee-owned firms often outperform their competitors on key metrics.

Recognizing the importance of this cultural shift, the company is planning a comprehensive communication strategy to ensure every employee understands the new structure and its benefits. Michelle Canada-Holda, NHG Vice President of Human Resources, outlined the plan. “We are planning a series of employee communications – starting with a kickoff message, written materials, meetings with employees and their families, and the formation of an employee owners' committee – to explain what we've done, why, and how it will affect everyone,” she said.

This initiative transforms the traditional employer-employee relationship into a partnership. For a company whose mission is to “provide value in products and services that empower people to lead healthier lives,” empowering its own people with ownership is a natural and powerful extension of its nearly 60-year journey.