United Natural Foods Inc. expects to request at least $1.9 million in state tax credits in return.

PROVIDENCE, R.I. United Natural Foods Inc., a wholesale distributor headquartered in Providence with $8.47 billion in net sales last fiscal year, expects to add 150 jobs in Providence by 2020 after selecting Rhode Island from about 30 prospective metro locations.

The company is seeking a long-term lease for a new, shared business services center in the Providence metro area, Gov. Gina Raimondo and the Rhode Island Commerce Corporation announced Wednesday.

United Natural Foods expects to request at least $1.9 million in Qualified Jobs tax credits from the Commerce Corporation at its Feb. 27 board meeting, Commerce Secretary Stefan Pryor told The Providence Journal.

About a year ago, Rhode Island leaders responded when the company issued a solicitation to different jurisdictions, seeking answers about office space availability and financial incentives that locations could offer, Pryor said.

The company narrowed its search to three top metro locations places that are leaders in "shared services operations," said Josephine Eke, the firm's vice president of branding and communications marketing. Centralizing in Rhode Island continues the company's effort "to stay nimble and evolve to the market changes," she said.

"Clearly, we have a great relationship with Rhode Island because our headquarters is here," Eke said in a phone interview Wednesday. "This is about building a business for the future, trying to do the best for our customers as well as our associates, and I think we're thrilled to be able to continue our relationship with Rhode Island."

Eke said she does not know how many of the jobs would be new and how many would move from other locations, or whether there might be layoffs elsewhere.

The wholesale distributor moved its headquarters from Connecticut to Rhode Island in 2009 and has grown exponentially since then.

As it seeks tax credits from Commerce, the firm could request more credits if it exceeds its current expectations for job creation, Pryor said. The board will likely consider a higher amount of credits, not yet negotiated, that the firm would redeem if it hires about 250 or more employees, Pryor said. Neither Pryor nor Eke could immediately say what median annual wages would be.

"It's exciting that Rhode Island-based operations such as United Natural Foods are deciding in Rhode Island's favor when they are considering where to expand," Pryor said. "Some of our recent victories include companies moving into Rhode Island from outside our borders. It's enormously encouraging that companies such as UNFI are joining A.T. Cross and Ocean State Job Lot, and other Rhode Island companies, in growing right here."

United Natural Foods (UNFI:Nasdaq) identifies itself as the largest publicly traded wholesale distributor of natural and organic foods and wellness products to the natural, organic and specialty industry in the United States and Canada.

The company's net sales have grown from $3.4 billion in the fiscal year that ended in 2008, the year it announced its move to Providence, to $8.47 billion in the fiscal year that ended July 30.

The company employs about 9,800 people at 33 distribution centers throughout the United States and Canada, with about 450 employees at its Providence headquarters, Commerce spokesman Matthew Sheaff said. United Natural Foods distributes more than 100,000 organic, natural and specialty products to more than 43,000 customer locations throughout North America.

In Rhode Island, the company now expects to open a "shared services center," Steven L. Spinner, the company's president, CEO and board chairman, said in a statement issued by the Commerce Corporation. That "new, centralized location" is expected to support business operations that includes services such as accounts payable and accounts receivable, Sheaff said.

A lease hasn't been signed, but the company is working toward a long-term lease in the Providence metro area to accommodate the new employees, the Commerce Corporation said. The company's headquarters is 313 Iron Horse Way, the American Locomotive Works building in Providence's Olneyville neighborhood, the same complex where the Commerce Corporation is located.

We look forward to expanding our presence in Rhode Island with the opening of our shared services center, which will enable us to drive greater efficiencies and improve the customer experience as we further simplify and standardize our supplier and customer interactions, Spinner said in the statement.

Weve long been proud that UNFI calls Rhode Island home, and today were pleased that its decided to grow here, Gov. Gina Raimondo said in a statement. The business climate weve worked to create over the past couple of years is one thats mutually beneficial for businesses and our residents, and were careful to ensure that the opportunities we create pay off in both the short- and long term.

The company is moving forward with hiring plans soon, with an open house scheduled for March 1, from 10 a.m. to 6 p.m., at its corporate headquarters.Hiring managers expect to conduct interviews at that time.

Last fiscal year,Whole Foods Market was the company's only customer whose business represented more than 10 percent of total net sales, with about 35 percent, according to United Natural Foods' annual report. In late 2015, the company announced it had extended its wholesale distribution relationship with Whole Foods until Sept. 25, 2025, extending a prior agreement that would have expired in September 2020.

In 2014, United Natural Foods acquired California food distributor Tony's Fine Foods for approximately $202.7 million.Last fiscal year, Haddon House was its largest acquisition, at approximately $217.5 million, and with other acquisitions, the company took on an additional 1,000 employees, according to its annual report.

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RI-based distributor of natural, organic food to add 150 jobs - The Providence Journal