Jan 9 2013
Helen of Troy Limited, designer, developer and worldwide marketer of brand-name household, personal care and healthcare/home environment consumer products, today announced that it will construct a new 1.3 million square foot distribution center in Olive Branch, Mississippi.
Through a wholly-owned subsidiary, Helen of Troy has entered into an agreement to purchase 84 acres of land in Olive Branch, Mississippi and entered into an agreement for the construction of a new, state-of-the-art 1,300,000 square foot distribution center on the purchased property. 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. Helen of Troy expects the new distribution center will be ready for operation in the third fiscal quarter of fiscal 2014.
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.
Gerald J. Rubin , Chairman, Chief Executive Officer and President, commenting on the new distribution center project, stated, "We are very excited to start this project and are looking forward to the day when we can move into this new distribution center. 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.
"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. Over the next five years we hope to add more than 300 full-time employees to our operations in DeSoto County.
"With interest rates at record lows, it is a great time to make this type of investment in the future of Helen of Troy. 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," Rubin concluded.
"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," Mississippi Governor Phil Bryant said.