Gilchrist & Soames plans $3m US expansion

By Simon Pitman

- Last updated on GMT

Related tags Swander pace capital Personal care Toiletry

Hotel toiletries maker Gilchrist & Soames is bucking the trend for closures and job losses by announcing a $3m expansion plan to expand its Indiana-based manufacturing facilities.

With contributions from local government, the project will create an estimated 40 jobs by 2014 and expand its existing 125,000 square-foot facility significantly.

Despite the global economic conditions, the company has chosen to expand because it has received significant help from local authorities.

The Indiana Economic Development Corporation granted performance-based tax incentives and training grants totaling almost $300,000, based on the company’s job creation plan, while property tax abatement has also been negotiated.

Expansion plans will start this year

The company says that it will begin recruiting for the new positions – from entry level through to managerial – during the course of the next year, while work to expand the production facility will also begin later in the course of this year.

Gilchrist & Soames supplies some of the world’s leading hotel and spa chains - including the Peninsula and Mandarin groups - with cosmetic-grade toiletry collections aimed at the luxury market.

The 1998 acquisition of the company by E&A industries gave it the opportunity to expand its distribution into the all-important US hospitality market.

Acquisition paves way for expansion

This position was further boosted by the 2002 acquisition of Essential Elements, a San Francisco-based company specializing in essential oil-based personal care products for the spa market.

In October 2007, Gilchrist & Soames was bought out by private equity group Swander Pace Capital, making it a joint US-UK venture.

At the time of the acquisition, Swander Pace Capital stated that it was its intention to grow the business by extending the company’s global reach as a luxury hotel personal care and amenities supplier.

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