|To accommodate expansion, Divisions Maintenance Group is moving its headquarters from One Riverfront Place in Newport across the river to Cincinnati. |
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Divisions Maintenance Group (DMG) has announced it will move its headquarters from One Riverfront Place in Newport to the newly developed Foundry Building in downtown Cincinnati on Fountain Square.
The move will provide the business with 83,000 square feet of space on the top two floors with the option to build a tower if more space is needed in the future.
According to an article by the Cincinnati Business Courier, Divisions received a 2.1 percent, 10-year job creation tax credit from the state of Ohio for the creation of $25.6 million in new payroll. The company has said they expect to create at least 256 new jobs. The Courier reported in July that the company expected to add 150 employees before the end of the year, many of them higher paying engineering and information technology positions.
The company has more than 600 employees, and about 450 will be relocated to the new location in the Foundry Building. As part of the requirements for the tax credit, DMG agreed to maintain operations at the new space for at least 13 years.
The facility maintenance company has had significant growth over the past year with revenue surpassing $433 million and is set to exceed $500 million by the end of the year, keeping it on a trajectory to meet its stated goal of becoming a billion-dollar company within three years.
DMG President and CEO Gary Mitchell said the company outgrew its current space in Newport by 2020 and began a search for a new space. The Foundry, a newly developed office and retail space in the old Macy’s Department store, offered the expansion space required with the promise of further development if needed in the future.
"The Foundry has a great layout for the way we work and offered us nearly unlimited expansion potential. Moving to the heart of downtown lets DMG surround itself with some of Cincinnati’s highest achieving businesses, the kinds of companies and people we want to learn from and engage with."
While it is hard to lose a company with such a long and solid history in Northern Kentucky, Lee Crume, CEO of Northern Kentucky Tri-ED, took it in stride. He told the Courier, "We know that the company took the decision of where to expand seriously and explored several options – in the end this is a business decision."
He added that it’s been a successful year for Northern Kentucky companies, and there is strong momentum in new projects in the region for the year ahead.