San Francisco-based McKesson Corporation, the latest California company coming to the Lone Star State, plans to invest $157 million in a North Texas regional center. The move is part of an organizational consolidation and expansion plan expected to add nearly 1,000 new jobs. The Texas Enterprise Fund (TEF) will kick in $9.75 million to the venture.
Texas Governor Greg Abbott anounced the deal Thursday, March 10, in which McKesson will invest $157 million. Included in the deal, the Texas Enterprise Fund (TEF) gave McKesson a grant offer of $9.75 million. Ranked 11th on the Fortune 500 list of companies, McKesson will open its regional office in Irving, located in the greater Dallas area.
“I am proud that McKesson has chosen to expand their operations in the Lone Star State and create nearly a thousand new jobs,” said Governor Abbott in a statement obtained by Breitbart Texas.
“This expansion is yet another testament to the power of Texas’ low-tax, low-regulation economic climate that continues to attract industry leaders, innovators, and job creators from around the globe,” added Abbott. “I am confident McKesson’s leadership in the pharmaceutical and healthcare technology sectors will serve as an invaluable contribution to the Texas economy.”
The Texas Legislature created the TEF in 2003, reauthorizing its funding in subsequent legislative sessions through 2015. Its purpose is to help attract new companies to Texas and expand job creation within existing businesses statewide. It has become one of the state’s most competitive economic development tools. All TEF projects must be approved by the governor, lieutenant governor, and the speaker of the House.
The healthcare services and informational technology leader scouted many metropolitan areas before deciding on Irving as its new regional hub, according to the Dallas Business Journal. Irving is home to other Fortune 500 companies like ExxonMobil and Fluor Corporation. Also headquartered in Irving are Nokia, Michael’s Craft Stores, NEC Corporation, CEC Electrical, Gruma/Mission Foods, Chuck E. Cheese, Expal, and the American College of Emergency Physicians. In April, the Los Angeles-based Pabst Brewing Company LLC plans to open a regional office in the Las Colinas Urban Towers.
Last year, the Milken Institute ranked Dallas-Plano-Irving fifth nationwide on their 2015 Best Performing Cities list while 24/7 Wall Street called Irving “one of the most livable cities in the United States.” In 2013, Business Insider named Irving the fifth safest big city to live in the United States, while Forbes placed the booming municipality with more than 230,000 residents, as its seventh fastest growing U.S. city since the recession.
“After a thoughtful and thorough selection process, we’re excited to consolidate our Dallas-area offices into a new, state-of-the-art facility in Irving, Texas,” said David Evangelista, McKesson Financial Center’s senior vice president and general manager. “Investing in this new, modern workspace will enable our associates to more effectively serve McKesson customers in the evolving healthcare industry.”
The City of Irving and the Greater Irving-Las Colinas Chamber of Commerce partnered with the Office of the Governor to facilitate state and local support for McKesson’s expansion.
Irving Mayor Beth Van Duyne said, “We are certain McKesson will find Irving to be a dynamic city that provides signature facilities, quality of life amenities and a deep and sophisticated pool of employee talent.”
According to Beth Bowman, president and CEO of the Greater Irving-Las Colinas Chamber of Commerce, this venture marks one of North Texas’ single-largest corporate commitments in 2016 and Irving’s largest real estate deal in the last decade.
“With this expansion, McKesson will become one of Irving’s largest employers, bringing an estimated $4.7 billion in total economic activity over the next decade, while continuing the incredible momentum that Irving-Las Colinas has experienced during the past two years,” she said in a statement.
McKesson will purchase an existing 525,000 square foot office building in Irving for the expansion. The Dallas Business Journal also noted the company seeks to hire professionals for technology, finance and accounting, purchasing and program management positions, among other related jobs. The Irving facility will be in addition to McKesson’s specialty pharmaceutical business headquartered in The Woodlands, Texas. McKesson has over 70,000 employees worldwide, of which more than 3,700 work at multiple locations in Texas. Presently, 900 of McKesson’s employees work for the company in North Texas.
Follow Merrill Hope on Twitter @OutOfTheBoxMom.