Universal Forest signs LOI for acquistion of treated-wood operations
Universal Forest Products is planning to expand its presence in the Southeast U.S. via an acquisition.
Grand Rapids-based Universal Forest said today that one of its subsidiaries signed a letter of intent to purchase “certain assets” of Tampa-based Robbins Manufacturing Co., a maker of treated-wood products.
The acquisition is expected to close by the end of August.
Universal Forest would acquire five of six Robbins Treating and Manufacturing wood-treating facilities in Florida, North Carolina and Georgia. The sixth facility, in Tarrytown, Florida, would continue to operate under Robbins.
The five operations that would be acquired by Universal Forest had net sales of $83 million in 2015.
Universal Forest Products CEO Matthew Missad said the acquisition would allow Universal Forest to increase its presence in the preservative-treated market in the Southeast and strengthen its position as a leading U.S. maker of "premier treated products."
“They’re a great fit for us strategically and culturally,” Missad said. “For years, we have respected Robbins as a formidable competitor known for high-quality products and service and for its integrity and culture of hard work and determination.”
Robbins board chairman Laurence Hall Jr., said the acquisition would ensure that the operations “would be in the hands of the best” and secure strong futures for its employees and customers.
He added that the deal would allow Robbins to focus on its other division’s niche business of making wood treated for pilings, poles, posts and other applications.
“With this acquisition, we know our customers will be well-served by the leader in quality treated-wood products, that our people will have opportunities that come with working for an industry leader and that our path of growth will continue,” Hall said.