Cache Valley-based Malouf Companies could receive up to $56 million in Utah tax credits as part of an expansion plan that projects as many as 4,200 new jobs at Malouf’s headquarters in Nibley over the next 20 years.
The expansion reflects Malouf’s diversification into a number of new businesses beyond its original role as a linen and bedding company.
The Utah Governor’s Office of Economic Opportunity, also known as Go Utah, announced the tax-credit agreement on Thursday, touting Malouf as an innovative provider of high-quality, high-paying jobs and a “source for good” on the planet.
“The number of jobs Malouf Companies plans to bring to the state will have a lasting impact in northern Utah,” Go Utah Executive Director Dan Hemmert said in a press release. “In the next 20 years, the company plans to hire for jobs in finance, legal, sales and development, engineering, product development, and many more.”
In addition to adding jobs amounting to an estimated $3.7 billion in wages and salaries over two decades, the agreement scripts a capital investment of $450 million.
Malouf Public Relations Manager Beth Thompson said all of the expansion is planned at the company’s Cache Valley headquarters.
Warehouse space will be converted to offices, and another building is planned on the property.
Malouf originally operated a distribution center in Nibley, but the facility there now serves primarily as the company’s global headquarters, which oversees seven distribution centers outside of Utah. A warehouse in Tremonton ceased operations last year, and product returns are still handled in Nibley.
Malouf has taken on a wider and wider business portfolio in recent months, and to reflect this, the company changed its name from Malouf Sleep to Malouf Companies.
Part of the diversification has involved acquisition of the freezer-meal business Citrus Pear and a company that develops mental-health apps known as Impact Suite. Malouf now describes itself as a “tech-based lifestyle and wellness conglomerate.”
The state economic-development agreement, accomplished through a Legislature-authorized program called Rural Economic Development Tax Increment Finance, is the second made by Malouf in the past 15 months. In May 2020, the state announced roughly $15 million in available tax credits for an expansion plan calling for 1,200 new jobs and $120 million in capital investment.
The new plan does not incorporate those projections but goes above and beyond them.
Malouf CEO Sam Malouf made this statement about the state assistance and Go Utah program:
“The booming growth of business in Utah is a testament to the Governor’s Office of Economic Opportunity. We’ve been able to work together to fuel our expansion and build out our international headquarters in Cache Valley, even through a difficult year. I’m excited to see what we can accomplish with this additional support from the state.”
The statutory requirements for rural development tax credits mandate that participating companies pay their employees at least 10 percent above the average wage in a given county. Though not providing exact numbers, Thompson noted Malouf “has a proven track record of paying a lot higher than that.”
Currently, Malouf employs about 500 people at its Nibley headquarters and 1,200 nationally.
The company also founded the Malouf Foundation, a charity organization dedicated to fighting the sexual exploitation of children. In June, the foundation announced plans to build Utah’s first residential therapy facility for young female survivors of sex trafficking.