GRAND RAPIDS – Wood products manufacturer UFP Industries Inc. announced on Monday that one of its wholly owned subsidiaries has signed an agreement to buy the assets of a South Carolina-based wood treatment operation.
Sunbelt Forest Products Corporation, a subsidiary of UFP Industries based in Barstow, Florida, which stands out as one of the leading producers of pressure treated wood and residential fences, will acquire Greer, based in SC Forest Products from Spartanburg for $ 17 million.
The deal includes Spartanburg properties, facilities and equipment. The company has a workforce of 300 employees.
Spartanburg and its affiliates operate four wood treatment facilities and a manufacturing facility that are mainly concentrated in the Mid-Atlantic region, totaling $ 543 million in sales in 2020.
“Spartanburg Forest Products has a great reputation for quality and service,” said Ken DelleDonne, president of Sunbelt Forest Products, in a statement. “Our customers are asking us to do more and the addition of the Spartanburg team will help us to better serve our customers’ needs. We look forward to working with them and creating more success stories together. ”
Spartanburg President and CEO Stephen Michael will remain in an advisory role to assist in the company’s transition to Sunbelt, according to a statement.
“The combination of Spartanburg and Sunbelt will generate operational efficiencies that will enable both companies to provide greater value to our customers, as well as expand our capacity and geographic reach,” said Michael. “We are excited to be joining the Sunbelt team.”
The deal is expected to close at the end of the first quarter of 2021.
UFP Industries (Nasdaq: UFPI) completed a series of acquisitions throughout 2020, the last of which occurred in December, when the company acquired Florida-based industrial pallet manufacturer, PalletOne Inc.
Led by its residential segment, UFP Industries recorded $ 1.49 billion in net sales in the third quarter of 2020, ending September 26, 2020. This was a 28 percent increase over the same period last year and ranked as the best quarterly earnings report in UFP’s 65th year of history.
The company expects to release its fourth quarter and year-end results at 4:30 pm on Wednesday, February 24.