LUDINGTON, MI - About 200 employees of a northern Michigan manufacturer received an average $20,000 Christmas bonus.

Ludington-based FloraCraft surprised its employees during a holiday lunch on Friday, Dec. 14, when owner and Chairman Lee Schoenherr announced plans to give nearly $4 million in bonuses.

Top gifts to employees with more than 40 years of tenure will exceed $60,000, the company. The gifts are a combination of cash bonuses and 401(k) contributions.

“This idea has developed over the past year and is my way of saying ‘Thank you’ to our team for the role they have had in our success," Schoenherr said in a statement. “My wife, Joan, and I are blessed in so many ways. We want to share these blessings with the men and women whose energy, passion and loyalty inspire us every day.”

The gift does not indicate that Schroenherr is retiring or selling the company, he added.

A family-owned company, FloraCraft is the world’s leading manufacturer of foam products for the craft and floral industries. FloraCraft products can be found at Walmart, Amazon, Michaels, JOANN, Hobby Lobby and other retailers.

The Christmas bonuses are meant to recognize the role employees have played in “building a world-class company in Ludington,” according to a news release.

Employees responded to the announcement with applause and gratitude, according to the release.

“It was very humbling," said Mary Overla, an assistant production supervisor at FloraCraft. "I started crying – it was huge for him to do something like that for everybody.”

The company’s average employee tenure is nine years. Some are second- and third-generation.

“Our employees were beyond surprised – and deeply grateful of Mr. Schoenherr’s generosity," said CEO Eric Erwin. “He wants to ensure our employees have resources available as immediate reward for their hard work, along with a nest that allows them to save, plan and prepare for their future security.”

Schoenherr took the helm of the family business and renamed it in 1973, leading the company to a premier position in the industry through buying competitors and expanding its product line to better meet the needs of its international client base. The company history goes back to 1946.