Tennant Co. is moving from its longtime home in Golden Valley to Eden Prairie.

The maker of industrial cleaning equipment is set to sign a purchase agreement Wednesday for the office complex at 3 Capital Dr. in Eden Prairie, with plans to move 500 people from the current headquarters in spring 2020.

“Now is the right time for a move. We’re at capacity for office space on our Golden Valley campus, limiting our options for how to use our existing facilities,” said Chris Killingstad, president and CEO of Tennant, in a statement. “This move creates the ability to optimize our Golden Valley location to be a dedicated manufacturing and engineering campus.”

The price of the Eden Prairie property and moving costs were not disclosed.

Founded in 1870 by George H. Tennant, the company has had multiple locations in its 150-year history. The headquarters has been in Golden Valley since 1957, when it had annual revenue of $4.6 million and employed 277 people.

Annual sales for 2018 were $1.1 billion, and the company now has 4,341 employees. About 1,200 work at the Golden Valley campus, which has seven buildings including its largest manufacturing facility and an innovation center that works on future technology products for the company.

Tennant has added more than 1,100 employees over the past five years, with revenue growing 36 percent over that time.

Now the growth has made space scarce at the Golden Valley complex. There is very little collaborative meeting space, and offices for some plant managers and work groups are on the production floor.

The company said it explored adding a building to the current complex but ultimately decided it made more economic sense and was more within its corporate character to move to an existing building.

“Over the years, Tennant has thoughtfully and prudently managed investments in our facilities,” Killingstad said. “Ultimately, we determined that purchasing an existing property and consolidating several locations into one was the most fiscally responsible choice for Tennant employees and shareholders.”

Finding the right fit for a move of this magnitude can be a challenge, but it can be cost advantageous compared with building something new. Tennant worked with an Excelsior-based property development firm, Oppidan Investments, to find the new space.

“Partnered with the right architecture and engineering firms, most existing office buildings can convey a great corporate image, usually at half the cost,” said Drew Johnson, vice president of Oppidan Investments, in a statement.

Under proposed plans, nearly 700 employees will remain in Golden Valley at Tennant’s main manufacturing plant and its global innovation center. Plant managers and others would gain the space vacated by executives and staff, freeing more space on the plant floor to expand operations there.

The Innovation Center also will remain in Golden Valley benefiting from proximity to the manufacturing operations.

Several smaller buildings Tennant owns in Golden Valley outside the headquarters complex are expected to be sold.

The new Eden Prairie space is just west of the intersection of Interstate 494 and Hwy. 169, about 12 miles south of Tennant’s current home.

The 40-acre campus currently includes three buildings. Tennant will be working with the Minneapolis office of the international architecture, interior design and planning firm Gensler on renovation of the new space. It is expected to be move-in ready in the first half of 2020.