News Summary

John Paul Mitchell Systems is moving its headquarters from California to Wilmer, Texas, creating around 80 jobs and investing over $12 million in the local economy. This strategic relocation is part of a growing trend of companies escaping high taxes in California. The Texas Enterprise Fund has supported the move with a $640,000 grant. The company will also open a global distribution center in Texas to bolster its operations following significant revenue growth in recent years, while maintaining educational ties to California.

Texas

John Paul Mitchell Systems, a leading hair care company known for popular brands including Paul Mitchell, Tea Tree, and Neuro, is set to relocate its headquarters from Santa Clarita, California, to Wilmer, Texas. This move, which is expected to create approximately 80 new jobs, comes along with a significant capital investment of over $12 million in the Texas economy.

The announcement was made by Texas Governor Greg Abbott, who underscored the positive economic impact of this relocation for the local community. Wilmer, a small town with a population of about 6,000 residents, is located approximately 20 minutes from the major metropolitan area of Dallas.

As part of the headquarters relocation, John Paul Mitchell Systems plans to establish a new global distribution center in Texas. This facility aims to enhance the company’s distribution capabilities, further supporting its growth following the company’s achievement of a remarkable $1.1 billion revenue milestone in 2022.

State Support and Economic Incentives

The Texas Enterprise Fund has provided a $640,000 grant to facilitate the company’s move, which is aimed at attracting businesses to Texas. In addition to the grant, the company will receive a $8,000 Veteran Created Job Bonus for each qualified veteran hired in conjunction with this expansion.

John Paul DeJoria, the co-founder of John Paul Mitchell Systems, expressed appreciation for the backing from Texas officials. DeJoria has resided in Austin for 25 years and has actively supported local political initiatives, including substantial donations to Governor Abbott.

Trends in Corporate Relocation

The relocation of John Paul Mitchell Systems to Wilmer is part of a wider trend of businesses leaving California for Texas. Numerous companies, including Chevron and Realtor.com, have made similar decisions citing high taxes and stringent regulations as motivating factors. This trend has been acknowledged by Governor Abbott, who highlighted the favorable economic policies and strong workforce in Texas that make it an attractive destination for businesses. Other notable companies that have shifted their operations to Texas include Yum! Brands (KFC), Tesla, and SpaceX.

Educational Partnerships

Despite this move, John Paul Mitchell Systems retains a presence in California through partnerships with three schools located in the Bay Area (San Francisco, San Jose, and Pleasant Hill), indicating a commitment to maintaining connections in its original base.

Impact on the Local Community

As Wilmer prepares for the arrival of John Paul Mitchell Systems, the community anticipates the economic upswing and job opportunities that the company’s relocation will bring. The establishment of the global distribution center is expected to support local businesses and contribute to the growth of the economy in the Dallas region.

Overall, the transition marks a significant step for John Paul Mitchell Systems as it aligns with the trend of corporations seeking more favorable business environments. With ongoing support from the Texas government and the promise of new job opportunities, the relocation could reshape the company’s future and its impact on local and regional economies.

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