- change ups
Universal Forest acquires Custom Caseworks, secures $75M loan
Universal Forest Products Inc. in Grand Rapids Township (Nasdaq: UFPI) has negotiated loan agreements with Prudential Investment Management Inc. totaling $75 million, which will be used to re-finance $40 million of existing notes and for expansion capital, including the acquisition of a Minnesota caseworks manufacturer.
“We’ve added yet another thriving company to our business portfolio, and we’re armed with the capital necessary to continue to grow our company and our opportunity,” said CEO Matthew J. Missad.
Founded in 1994 and located in Sauk Rapids, Minn., Custom Caseworks Inc. is a manufacturer of point-of-purchase and commercial store fixtures, commercial casework and office furniture, laminated and painted wood panels, and OEM manufactured and private label products. UFPI said Custom Caseworks’ products and processes complement Universal’s growing industrial products and customer base. Custom Caseworks has annual sales of nearly $7 million and recently added capacity.
Terms of the acquisition deal were not released. It is expected to close before year end.
The notes negotiated with Prudential include unsecured 10 year Series A senior notes at 3.89 percent interest totaling $35 million and unsecured 12 year Series B senior notes at 3.98 percent interest totaling $40 million. Proceeds will be used by UFPI to re-finance its existing Series 2002-A Senior Notes totaling $40 million, which carried a 6.16 percent interest rate, and for general corporate purposes.
The notes allow UFPI to pay down its revolving credit line used for the November purchase of Washington-based Nepa Pallet and Container Co. and provide capital for the pending purchase of Custom Caseworks.