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Old Posted Feb 3, 2010, 3:49 AM
Johnny Ryall Johnny Ryall is offline
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Goodlett Farms (NorthEast Memphis) News

Smith & Nephew completes $14M acquisition of site for new HQ
the Commercial Appeal | By Toby Sells



Smith & Nephew Inc. completed the $14 million acquisition of what will become its Memphis headquarters on Friday and is ready to begin improvements that will bring employees to the site by late summer. The medical device maker bought the four-story, 285,315-square-foot building that once housed the headquarters of Harrah's Entertainment at 7216 Goodlett Farms. Harrah's left Memphis for Las Vegas in 2008.

The company said the entire project will cost $42 million in real estate, renovations and new equipment. Renovations will begin this winter. "This is not a simple real estate transaction. We will transform this property into the crown jewel of Memphis' biomedical strategy," said Joseph M. DeVivo, president of Smith & Nephew Orthopaedics. "Not only does this property represent the future for Smith & Nephew Orthopaedics, but I believe it will be a catalyst for future investment in our community by other biomedical companies."

The company is expected to move numerous nonmanufacturing jobs to the new site from its Brooks Road location. Management has repeatedly stated that the company will not move out of its Brooks Road location. The move will also allow the company to consolidate some of its U.S. business operations, such as information systems, to the Brooks Road campus. It would also free space for more manufacturing operations at Brooks Road.

The second phase of the Goodlett Farms project would include renovation of a warehouse to laboratories, conference rooms and auditoriums where visiting surgeons will learn how to implant Smith & Nephew's devices. The expansion project will create 160 jobs with annual average wage of $93,427, according to documents the company filed with Shelby County. Matt Kisber, Tennessee commissioner of economic and community development, said the purchase shows Smith & Nephew's continued commitment to Memphis and Tennessee.

Shelby County Interim Mayor Joe Ford said the move will be a further boon for the county and for Memphis. "You could not have asked a company to reward a city like Smith & Nephew has done," Ford said. Larry Jensen, president and CEO of Memphis-based Commercial Advisors LLC, represented Smith & Nephew in the deal. Harrah's was represented by Chicago-based Jones Lang LaSalle.

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