Industry leading logistics provider currently employs over 350 Kentuckians

FRANKFORT, KY - On October 2, 2024, Gov. Andy Beshear highlighted continued momentum of the state’s distribution and logistics sector as Verst Group Logistics Inc., an industry-leading, full-scale logistics provider in warehousing, fulfillment, packaging and transportation, announced plans to expand its Boone County operation with a $6.6 million investment, creating 17 new full-time, Kentucky jobs.

“Our unique location and access to resources puts Kentucky in a great position to be a key player in the distribution and logistics industry,” said Gov. Beshear. “We have seen tremendous growth in this sector across the commonwealth and this announcement from Verst only adds to that. This is a welcome investment for the Boone County and Florence community, and I look forward to the company’s continued success in Northern Kentucky.”

The project will see Verst expand its current operation and upgrade equipment in two of its buildings located at 7130 New Buffington Road in Florence. The upgrades will include new LED lighting, a driveway around the building to increase traffic flow and safety, an upgraded roof, a new sprinkler system, exterior painting of the buildings, interior and exterior concrete work, among other enhancements to improve safety, sustainability and workability for employees. The investment is expected to create 17 new, quality Kentucky jobs, pushing the company’s total Kentucky employment to over 370.

“We are excited to expand and invest in the future of our operations here in Kentucky,” said Paul Verst, CEO of Verst Group Logistics. “This investment not only enhances our capacity but also reflects our commitment to providing safe, sustainable, and high-quality jobs to the local workforce. We’re proud to continue our growth in a region that has supported us throughout the years.”

Founded in 1966, Verst Group Logistics is a leading logistics provider based in Walton, Kentucky with additional operations in Florence, Hebron, Lexington and Louisville. The company offers a wide range of services, providing logistics solutions for warehousing and contract logistics, omnichannel fulfillment, contract packaging, shrink sleeve labeling, transportation management and freight brokerage.

Boone County Judge/Executive Gary Moore congratulated CEO Paul Verst on the company’s expansion: “Verst Group Logistics is a long-standing Northern Kentucky company with a commitment to investing in our region. We’re proud that Verst chose Boone County for this expansion.”

Florence Mayor Julie Metzger Aubuchon thanked the Verst leadership team for choosing to expand in the city of Florence: “As Verst Group Logistics has grown and is adding new equipment and jobs, we’re grateful the company continues to expand its capabilities and invest in its facilities in Northern Kentucky to serve its growing customer base throughout the country.”

BE NKY Growth Partnership CEO Lee Crume shared that the Cincinnati region is a central hub for logistics companies serving U.S. and international customers: “Our ideal location in the Midwest allows companies to move products quickly and efficiently to more than half of the U.S. population within a day’s drive. Congratulations to Verst on this additional investment to their significant presence in Northern Kentucky.”

Verst’s investment and job creation build on the best four-year period for economic growth in state history.

Since the beginning of his administration, Gov. Beshear has announced more than 1,000 private-sector new-location and expansion projects totaling over $32.5 billion in announced investments, creating more than 55,000 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history.

The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 and 2023 topped $26 in consecutive years for the first time.

Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On’s transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC’s $2 billion, 2,000-job gigafactory project in Warren County; Toyota’s $1.3 billion investment in Scott County; and INFAC North America’s $53 million investment in Taylor County, among others.

The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history. Last year, Kentucky set the record for the longest period with the lowest unemployment rates in state history.

Kentucky also secured rating increases from major credit rating agencies Fitch Ratings, S&P Global Ratings and Moody’s Investors Service.

In March, Site Selection magazine ranked Kentucky third nationally and first in the South Central region for economic development projects per capita in its 2023 Governor’s Cup rankings. In April, Site Selection placed Kentucky second in the South Central region and in the top10 nationally in its 2024 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.

Gov. Beshear announced a “Supply Kentucky” initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) last week preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $150,000 in tax incentives based on the company’s investment of $6.6 million and annual targets of:

- Creation and maintenance of 17 Kentucky-resident, full-time jobs across 10 years; and

- Paying an average hourly wage of $27.30 including benefits across those jobs.

Additionally, KEDFA approved Verst for up to $100,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

In addition, Verst can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

For more information on Verst Group Logistics, visit verstlogistics.com.

A detailed community profile for Boone County can be viewed here.

Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.