Gillette's parent company plans to build the personal care company's new global headquarters and innovation center in South Boston, choosing to locate the new HQ near its current one after a yearslong search.

Procter & Gamble will purchase 232 A St. in South Boston with plans to build a Gillette Grooming Headquarters and Technical Innovation Center, the company announced Tuesday morning. The project would cost nearly $1B.

"Our new space will give our employees the tools, capabilities and environment to collaborate and inspire each other every day. I know that our entire team is proud to continue to call Boston home," P&G Gillette CEO Gary Coombe said in a statement.

The company, which has called South Boston home for some 125 years, kicked off its search for a new global headquarters in 2023 with the goal to find a space to house its 750 corporate and research employees.

As part of the plan, the new site would include 1.5 acres of public space along the Fort Point Channel.

The plans are part of a long-term strategy implemented by the company to maintain its roots in the state. Those plans have included the expansion of its Andover manufacturing facility and the redevelopment of its current 31-acre South Boston campus.

Tishman Speyer and its joint venture, Breakthrough Properties, had acquired the A Street property in 2021 for $80M from P&G. The site had been permitted for a 324K SF lab project. However, lab plans ultimately fell through as the life sciences market deteriorated since that time.

It's unclear how much P&G agreed to pay to have the land back, but the announced $1B investment includes the acquisition, construction and equipment purchase costs for the property.

"We are proud to partner on this landmark transaction, which will yield a tremendous outcome for Gillette, Breakthrough’s investors and most importantly, for the City of Boston," Tishman Speyer Managing Director Jessica Hughes said. "Gillette's decision to invest in a purpose-built headquarters at 232 A Street reflects exactly the kind of long-term commitment to place that defines great companies and cities."

The company is also in the planning process for a 5.7M SF mixed-use redevelopment of its 31-acre property in the same neighborhood. The plans for that site were first announced last year and called for roughly 1,800 housing units and over 50% of the site to become public open space.

In April, Gillette broke ground on its 200K SF manufacturing facility in Andover. It plans to move employees to the site in 2026, according to the release.