Herbalife Expansion in Forsyth County Will Create More Than 300 New Jobs

Press Release

Governor Pat McCrory, North Carolina Commerce Secretary John E. Skvarla, III and the Economic Development Partnership of North Carolina announced today that Herbalife Ltd. will be expanding in Forsyth County. The company plans to create 301 new jobs in Winston-Salem by the end of 2018, in addition to the 500 jobs that will have been created by the end of 2015. It also plans to invest an additional $3.5 million into infrastructure and development by the end of next year.

"Herbalife is nearly doubling its workforce and its commitment to North Carolina," said Governor McCrory. "These new jobs will be a boost to the Piedmont Triad region."

Herbalife, Ltd. is a global nutrition company headquartered in Los Angeles, CA. The company has more than 7,800 employees worldwide, and its shares are traded on the New York Stock Exchange (NYSE: HLF) with net sales of $5 billion in 2014.

"This is yet another example of the state's performance-based incentives helping a local manufacturer expand," said Secretary Skvarla. "We continue to grow jobs on the home-front with existing business. Nothing compares to North Carolina and any decision to grow here is an easy one."

Herbalife currently employs 404 people in Forsyth County who produce a wide range of Herbalife's nutrition and weight-management products. The company plans to further expand its manufacturing operations in Winston-Salem, as well as establish a significant global corporate IT presence. The new jobs will include production staff and information technology staff. Salaries will vary by job function, but the average annual wage will be $54,506. The average annual wage in Forsyth County is $47,624.

"Our newest and largest facility in Winston-Salem is integral to our global growth and we are excited to be embarking on this next phase of investment," said David Pezzullo, Herbalife's executive vice president, worldwide operations. "We are grateful to Governor McCrory and to all those who supported this decision, enabling us to expand our operations in Winston-Salem and make this additional investment in jobs and infrastructure."

The project was made possible in part by an award to Herbalife Ltd. from the state Job Development Investment Grant (JDIG) program, as voted by the state Economic Investment Committee. Receipt of the award is based on proof of job creation and other performance requirements. JDIGs are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state, and which would not be undertaken in North Carolina without the reimbursement.

Under the terms of the company's JDIG, Herbalife Ltd. is eligible to receive up to twelve annual reimbursement payments equal to 41 percent of the state personal income tax with-holdings from the eligible new jobs created since the date of the initial award. Receipt of each annual reimbursement is based on state-certified proof that the company has fulfilled incremental job creation requirements. Over twelve years, the JDIG award could yield aggregate benefits to Herbalife Ltd. of nearly $3 million upon the creation of 301 jobs.

Nearly $1 million in additional funds from the company's JDIG award could be added to the state's Utility Fund for infrastructure improvements in economically distressed counties. When a JDIG is awarded to a company whose site is located in the state's more economically prosperous counties such as Forsyth, a percentage of the company's grant is allocated to the Utility Fund to encourage economic development in less prosperous counties. For more information on the county tier designations, visit http://www.nccommerce.com/research-publications/incentive-reports/county... (link is external)

"By nearly doubling its workforce, Herbalife is having a big impact on our community," said Senator Joyce Krawiec. "I look forward to working with Governor McCrory to bring more jobs to our great state."

"I applaud Herbalife's decision to expand right here at home," said Representative Donny Lambeth. "This expansion and the more than 300 new jobs will have a positive effect on Forsyth County and Winston-Salem."

Herbalife received a JDIG in December of 2012 and is currently in its third year of successful job ramp ups in order to meet the 500 jobs performance criteria to be reimbursed.

In addition to the N.C. Commerce and the Economic Development Partnership of N.C., other partners that helped with this project include North Carolina Community College System, Forsyth Technical Community College, Winston-Salem Chamber of Commerce, Forsyth County and the City of Winston-Salem and Winston Salem Business, Inc.