Hyspeco, Inc. is a full-line Fluid Power Distributor of motion and control components centered on hydraulic, pneumatic, electro-mechanical, and fluid connector components.
Birth Through Perseverance
Hyspeco was founded in 1968 when Buford “Penny” Pendergrass saw a need for specialized hydraulic and pneumatic components in Wichita, Kansas. Hyspeco has been a faith-based, family oriented company from its start in 1968. It all began out of the Pendergrass family home and car which then led to the first official Hyspeco office on Bebe street here in Wichita. Penny worked with various people who had a need for specialized parts. He would create that part on paper and with the help of a welder, he would make the part a reality. Soon after, Penny decided to create an official company that he named Hydraulic Specialty Company (shortened to Hyspeco), which has continued to thrive as it reaches its 50-year anniversary in 2018.
The decision to become an ESOP company came in 1989. Bob Stancer (who had purchased the company from Penny Pendergrass) had made the decision to sell the company; however, employees felt that since the company could not find a buyer at the time, they wanted to purchase it and become an ESOP company. Dave Zavala met with employees and as a group, they put up cash or their 401K and bought the company in late 1989, the company has remained an ESOP company since then.
The impact of becoming an ESOP was positive, this move created stock options for employees and every employee now had a stake in the company. ESOP allows for each employee to have an equal vote in the company, and since 1974 has become the most widespread company stock plan in the U.S. There were benefits to the company as whole because Hyspeco does not pay federal or state business taxes. The benefits for employees include owning a small part of a company as well as having retirement and 401K benefits.