The US firm, whose portfolio includes the Revlon and Vidal Sassoon brands, announced that it will construct the new 1.3 million square foot distribution center having entered into an agreement to purchase 84 acres of land in Olive Branch.
"Helen of Troy's business operations have grown in recent years, and we expect our businesses to continue to grow, both organically and through acquisitions, in the future,” said Gerald Rubin, Chairman, CEO and president.
Workforce boost
Rubin also announced, along with the agreement, that Helen of Troy will be looking to add 300 jobs over the next five years in DeSoto County; a move that has received the local governor’s support.
"I am grateful to Helen of Troy for expanding its presence in Mississippi by constructing this new distribution facility. The company's investment and the jobs it will create will have a significant impact on both the DeSoto County economy and the state as a whole,” said Mississippi Governor Phil Bryant.
Commenting on the new distribution center project, Rubin continued, "We are very excited to start this project and are looking forward to the day when we can move into this new distribution center,” which is expected in the third quarter 2014.
“With the addition of this new 1.3 million square foot distribution center, Helen of Troy will have a total of 2.5 million square feet of owned and operated distribution capacity in DeSoto County, Mississippi. This is a significant commitment for Helen of Troy and we will continue to benefit from the skilled workforce, logistics infrastructure and geographic attractiveness of DeSoto County.”
Total costs
Total estimated costs of the project, including land, construction costs, warehouse equipment and fixtures to be used in the distribution center, are approximately $37 million.
Helen of Troy expects to fund the project using a combination of cash from operations, long-term financing and the Company's existing revolving line of credit.
"With interest rates at record lows, it is a great time to make this type of investment in the future of Helen of Troy,” continued Rubin.
“In addition, local agencies and governments, including the Mississippi Development Authority, the State of Mississippi, DeSoto County and the City of Olive Branch, provided us with incentives to enhance the attractiveness of this project," he concluded.
What now?
Helen of Troy currently owns and operates a 1,200,000 square foot distribution center in Southaven, Mississippi and leases approximately 700,000 square feet in Memphis, Tennessee.
Upon completion of the new facility, Helen of Troy will no longer lease the Memphis facility and will operate solely out of owned facilities.