Medline splitting operations between Lake, Cook counties
Medline Industries Inc. will start moving about 900 workers from Mundelein to its new headquarters in Northfield later this year after paying about $44.7 million for the former Kraft Heinz Co. campus.
Splitting its operations between Lake and Cook counties for several more years is expected to help Medline establish the new, larger campus for future growth while still fulfilling its multiyear tax incentive deal with the state.
"We continue to honor all of our commitments to the state to attract, retain and grow talent," said Medline spokeswoman Vivika Panagiotakakos.
Medline had received about $17.5 million in state tax credits in 2014 to retain jobs in Lake County for 15 years.
So far, the company has not received any tax credits from the EDGE agreement, because it is still within the two-year ramp-up phase for job creation and investment, said Kyle Ann Sebastian, spokeswoman for the Illinois Department of Commerce and Economic Opportunity, which oversees the tax agreement.
Medline, founded in 1910, manufactures and distributes health care supplies. It primarily serves nursing homes, hospitals and other health care centers with more than 350,000 products.
Since coming to Mundelein in the mid-1980s, the company has expanded at least three times. The privately held Medline said its 2015 sales were more than $8.1 billion. The new campus will provide 716,000 square feet, or more than double its current size.
Medline said half its 1,800 Mundelein-based employees will settle into Three Lakes Drive's 70 acres near I-94 in Northfield. The new campus offers newer technologies for meetings, a fitness center, basketball court, outdoor patio with fire pits, a lake and walking trails. Kraft Heinz, which previously occupied the campus, has since moved to Chicago.
"Since it is still too early in the planning stages to share details of the move, what I can tell you is that more than half of the 1,800 Mundelein employees will make the move later this year, including some executive management, several product divisions, marketing and sales," said Panagiotakakos.
The company will keep the Mundelein campus for its warehouse and production facilities.
"This split campus will help to accommodate our business needs," she said.
Losing roughly 900 workers and having more office space available could have an economic impact on Mundelein, said Mundelein Mayor Stephen Lentz.
"They've always been a great village resident and we're happy for their success and growth," said Lentz. "And I understand that Medline owns that land, so if they have ideas for it, we're certainly open to great ideas."
Having a larger campus in Northfield will allow Medline to "keep up with the rapidly changing health care environment, but more importantly, get ahead of it," Chief Operating Officer Jim Abrams said in a statement.
Northfield village President Fred Gougler was happy to see Medline arrive.
"We are committed to assisting Medline and their employees throughout their transition and look forward to a long and collaborative relationship in the years ahead." Gougler said.