Gov. Beshear breaks ground for Tempur-Pedic global headquarters expansion
LEXINGTON, Ky. (Oct 3, 2011) – Governor Steve Beshear today joined community leaders and officials from Tempur-Pedic to break ground for the company's global headquarters expansion in Lexington. The new approximately 125,000-square-foot facility in UK's Coldstream Research Campus is expected to create 65 new jobs, bringing its total employment to just over 300 in the next five years.
UK President Eli Capilouto, UK Vice President for Commercialization & Economic Development Len Heller, former UK President Lee T. Todd Jr. and Coldstream Executive Director George Ward at the Tempur-Pedic groundbreaking."Tempur-Pedic is an impressive and innovative company whose Kentucky roots are continuing to grow. This announcement is great news for Central Kentucky and will result in new jobs and investment for the community where it all began," Gov. Beshear said. "This expansion represents a successful partnership between state and local governments, university leaders and a fast-growing global company that continues to create economic opportunities for Kentucky."
Tempur-Pedic, an international company focused on innovative sleep products, is one of the fastest growing public companies in Kentucky. The billion dollar company started in Lexington in 1993. The company plans to invest approximately $18 million as a result of the project, which is expected to be completed by December 2012.
"This is an important day in the vibrant history of Tempur-Pedic, and we're proud that it's happening right here in Lexington," said Mark Sarvary, CEO of Tempur-Pedic International Inc. "Our passion for this community and our commitment to growth, strengthens every day. This new, world-class headquarters will serve our company, our brand and our associates well in our mission to become the world's favorite mattress and pillow brand."
An economic impact study performed by the Cabinet for Economic Development this past spring shows the number of direct, indirect and induced jobs that will result from Tempur-Pedic’s existing and new employment is 772 jobs. Those jobs will provide an annual $72.8 million boost to Kentucky's gross domestic product.
"Tempur-Pedic brings extraordinary, broad recognition and new jobs — good jobs — to Lexington," Lexington Mayor Jim Gray said. "Growing and retaining the headquarters of this rapidly growing, internationally known brand is essential. Helping local businesses grow is a major part of our economic development efforts. Not only will Tempur-Pedic serve as a vote of confidence for Lexington, it will once again show the world that Lexington is a viable and thriving location for a world headquarters operation."
"Commerce Lexington Inc. is honored to be a part of Tempur-Pedic's groundbreaking ceremony," said Commerce Lexington Inc. President and CEO Bob Quick. "Tempur-Pedic's expansion in Lexington and the construction of their new global headquarters in Coldstream Research Campus will create quality, stable jobs for our citizens. Congratulations to Tempur-Pedic!"
"The University of Kentucky's Coldstream Research Campus is proud to be the home of an expanded Tempur-Pedic headquarters," said UK President Eli Capilouto. "This project represents the kind of engagement and service that a flagship institution should provide to the Commonwealth: facilitating the creation of good jobs and stimulating innovation by creating a home for research and excellent companies like Tempur-Pedic International."
The Kentucky Economic Development Finance Authority preliminarily approved Tempur-Pedic for tax incentives up to $8 million through the Kentucky Business Investment program. The performance-based incentive allows the company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.
"By locating a new global headquarters at Coldstream in Lexington, Tempur-Pedic is providing new opportunities for our workforce and a boost to our economy," said Sen. Julian M. Carroll, of Franklin.
"Tempur-Pedic sets the gold standard when it comes to getting a good night's sleep, so I'm proud that the company is taking this next step to increase its presence in the Commonwealth," said Jesse Crenshaw, of Lexington. "This groundbreaking re-affirms the company's commitment to our community and shows that our workforce, like the Tempur-Pedic mattress itself, is truly second to none."
New and existing companies have announced the creation of more than 1,400 new jobs in Lexington during Gov. Beshear's administration. These economic development projects represent a more than $190 million capital investment in the Commonwealth.
For more information on Tempur-Pedic, visit www.tempurpedic.com.
Information on Kentucky's economic development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook at www.Facebook.com/ThinkKentucky or follow on Twitter at www.Twitter.com/ThinkKentucky.
A detailed community profile for Lexington (Fayette County) can be viewed at http://www.thinkkentucky.com/edis/cmnty/index.aspx?cw=053.
The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2009 totaled nearly $977 million with the creation of more than 6,600 new jobs. Information on available development sites, workforce training, incentive programs, community profiles, small business development and other resources is available at www.ThinkKentucky.com.