According to Inside Indiana Business, Festool will move its U.S. headquarters from California to Lebanon, Ind. The company will initially establish a headquatrters building, distribution facility and its national training center in the new location.

The company, which manufactures power tools and invented the hand-held orbital sander, plans to invest more than $2 million in a new facility at the Lebanon Business Park and will create 27 new jobs in the next two years.

The company had considered five states for the new facility. Once it decided on Indiana it looked at sites in at least 10 counties.

Boone County Economic Development Executive Director Kristie McKillip told InsideIN that a sister company, which is watching to see if the process moves smoothly, is also considering relocating to the city.

McKillip says initially the company will locate its headquarters building, distribution facility and its national training center in Lebanon, but is considering doubling the size of its operations to include an assembly line and a production facility.