Sullivan Tire owners plan to sell auto service chain to employees.

Bob Sullivan Jr. and Paul Sullivan have received many inquiries over the past two years about their acquisition of the family-owned tire and repair store empire, amid industry consolidation. However, they turned down every offer. Instead, the Sullivan brothers decided to sell their company to their 1,460 employees. On Friday, they informed their employees that the Norwell-based Sullivan Tire chain of tire stores has been sold to the newly formed Employee Stock Plan. All employees who stay through the end of the year will become members of the plan and will be entitled to a share in the company. They will become fully vested after six years, and will be able to buy back their shares when they retire at age 65 or older. The deal also includes Sullivan Tire real estate: the company owns''more than 40 of the 117 stores located throughout New England.

"As we get older, we have to recognize the future and rethink what we want to be," Paul Sullivan said. "We have this big rumor mill of, 'When are the Sullivans going to give out?' Everyone seems to be selling out' ... That's not what we want to do. We care too much about our people to turn our backs on them.

The deal makes Sullivan Tire one of the largest employee-owned companies in New England under the Employee Stock Ownership Plan. Other notable local companies owned by the Employee Stock Plan include Cape Air, Abt Associates and Mass. Bay Brewing Co. the parent company of Harpoon.

Joe Zaccheo, CEO of Sullivan Tire, said,''that employees won't have to contribute their own funds and their existing 401(k) retirement program with Sullivan Tire will remain unchanged. It will simply be an added benefit, he said. (Employees who leave before age 65 can choose to roll their funds into another retirement program over time.)

The company financed the deal with a loan from M&T Bank to buy back most of the stock held by members of the Sullivan family. The sellers also provided a loan to the company to cover the time gap. As the company's debt is repaid, its value will increase. Each year there will be a calculation of the company's market value. Participants in the Employee Stock Plan will receive a percentage of shares based on the level''Sullivan. "We're not going to do that.".