Barrett Trucking is buying DuBois Construction, the company that bought itself from Gov. Phil Scott in 2017.
Wayne Lamberton, a DuBois vice president and close friend of Scott, confirmed to VTDigger that DuBois had reached a sales agreement with Barrett Trucking.
The sale is due to close in late March, Lamberton said. He said he could not talk about the specifics of the deal, including the sales price, until the closing date.
After taking office five years ago, Scott sold his 50% stake for $2.5 million. He financed the sale and agreed to be paid over 15 years at an interest rate of 3%. He told VTDigger in 2018 that he would be paid only interest until this year, at which point he would collect both principal and interest.
Asked if Scott would get a lump sum payment of the remaining debt DuBois owes him as part of the sale to Barrett Trucking, Lamberton would only say: “Everything will be satisfied.”
Scott spokesperson Jason Maulucci told VTDigger the debt would remain the responsibility of the current owners of DuBois Construction and would not be transferred to the new owner. He directed all questions to the company.
DuBois President Jeff Newton did not respond to a message Monday seeking comment.
Scott told VTDigger in 2018 that his longtime friend and partner, Don DuBois, had sold his own half-interest to the company.
At the time, Lamberton told VTDigger that he and Newton bought DuBois’s share, with Lamberton owning a minority share and Newton a majority share. Newton became a partner when Scott sold his share.
Lamberton, a developer, also owns Maplewood Ltd., which operates a mega convenience store in Berlin that is promoted by the state in a controversial deal struck under the administration of former Gov. Peter Shumlin.
Scott had been part-owner of DuBois for 30 years with Don DuBois. He started working for the Middlesex construction company in high school.
In 2018, the Vermont State Ethics Commission ruled that Scott had violated the state’s Code of Ethics by agreeing to be paid over time for the sale of his share in Dubois, which did business with the state.
The next year, however, the commission reversed itself, saying it had erred in allowing an outside party, the Vermont Public Interest Research Group, to request the opinion. Under a policy adopted in 2019, the commission now issues an opinion only when state officials or employees request clarity about their own status.
VPIRG Executive Director Paul Burns did not respond to a voicemail and follow-up phone calls requesting comment on the latest sale of the company.
After the 2017 deal was announced, Burns said the arrangement did not fully divest the governor from the company.
“It seems as though Gov. Scott will have an ongoing interest in the financial success of his former business,” Burns said, because the business must be successful to pay him back.
It would have been cleaner, Burns said, if the company obtained a bank loan, paid Scott the full amount and repaid the bank over time.
Scott said at the time the company could not take out a large loan to pay him outright. Though the company is worth about $5 million, most of that value is tied up in hard assets, including equipment, buildings and land, he said.
For Dubois Construction to write him a check up front for the sale “would have required liquidation of the business,” he said.
In fiscal year 2016, Dubois contracted with the state for $55,191 worth of business.
Correction: An earlier version of this story misidentified the firm that bought Dubois Construction. It is Barrett Trucking.
