Tempur-Pedic announced plans Thursday to expand its headquarters operations in Lexington and add 65 jobs over the next five years.
The company, which sells mattresses and pillows worldwide, anticipates the investment will total $18 million as it builds a 100,000-square-foot headquarters building at the University of Kentucky's Coldstream Research Campus. Construction is expected to begin this fall and be finished by December 2012.
The Kentucky Economic Development Finance Authority on Thursday approved $8 million in tax incentives for the company, which now employs 237 in Lexington.
The announcement comes after the company turned in strong earnings results on Tuesday for its first quarter. Sales increased 28 percent, driving profit up almost 50 percent.
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"The first quarter was a record quarter, not just a record first quarter, but the best quarter ever," said Dale Williams, executive vice president and chief financial officer. "There's tremendous growth in the business."
The company attributed the improved performance to a 60 percent increase in advertising.
"While it's still early, all these marketing campaigns are showing positive results," CEO Mark Sarvary said on Tuesday, noting that the company's Web site traffic has risen considerably in target markets including the United States, France, Germany and the United Kingdom.
Williams said the 65 employees expected to be hired in Lexington "will cover the gamut," including marketing, sales, finance and business development.
The jobs are expected to pay an average hourly wage of $50, including benefits.
"Tempur-Pedic brings extraordinary, broad recognition and new jobs — good jobs — to Lexington," Mayor Jim Gray said in a statement.
"Not only will Tempur-Pedic serve as a vote of confidence for Lexington, it will once again show the world that Lexington is a viable and thriving location for a world headquarters operation," Gray said.