Universal Forest acquires four companies
Universal Forest Products recently acquired four companies with a combined $50 million in annual sales.
Matt Missad, CEO of Grand Rapids-based Universal Forest Products Inc., or UFPI, announced the four acquisitions in the company's first-quarter earnings call with shareholders.
Missad said UFPI is focused primarily on unit sales growth, but the deals are also expected to enhance its bottom line, which he said has been affected by recent “weather-related shutdowns” and the rising price of lumber.
“We will continue to implement cost-saving initiatives as we integrate our recent acquisitions,” he said.
Terms of all four deals were not disclosed.
Great Northern Lumber
On Jan. 15, UFPI acquired Blue Island, Illinois-based Great Northern Lumber, a manufacturer of lumber and panel goods with a heavy focus on concrete forming and industrial products.
UFPI said the purchase will allow it to grow its “business and presence” in the Chicago area.
Spinner Wood Products
On Jan. 23, UFPI acquired Naches, Washington-based Spinner Wood Products, a manufacturer of wood bins and industrial products, such as pallets.
Its assets and business are being folded into UFP Washington, a UFPI subsidiary, and its real estate will eventually be sold.
UFPI said the move will “create efficiencies and broaden the customer and product base” for UFP Washington.
In early April, UFPI acquired Deer Park, Australia-based Expert Packaging, an industrial packaging manufacturer.
The acquisition expands UFPI’s footprint and customer base in Australia.
Fontana Wood Products
Also in early April, UFPI purchased the assets, equipment and machinery of Fontana Wood Products’ Clayton Supply facility in Fontana, California.
The facility manufactures components primarily for the manufactured housing industry. UFPI will move the acquired assets to its affiliate, UFP Riverside, in Riverside, California.
Prior '18 acquisition
The Business Journal reported in March UFPI signed an agreement to acquire certain assets of North American Container Corp., an industrial packaging manufacturer based in Georgia with sales of about $71 million in 2017.
That deal is expected to close June 1. Terms of the deal were not disclosed.
UFPI posted first-quarter net sales of $993.8 million, up from $846.1 million in the first quarter of 2017, a record increase of 17 percent.
The first three months of 2018 represented the 11th consecutive quarter in which the company reported record net sales and net earnings.
Founded in 1955, Universal Forest Products (Nasdaq: UFPI) is a holding company that provides capital, management and administrative resources to subsidiaries that supply wood, wood composite and other products to retail, construction and industrial markets.
Its affiliates are located throughout North America, Australia, Europe and Asia.
The company had 2017 net sales of $3.94 billion.