Published in Breaking News

Universal Forest Products to acquire store fixtures maker in $68 million deal

BY MiBiz Staff Thursday, September 01, 2016 11:41am

GRAND RAPIDS — Universal Forest Products Inc. (Nasdaq: UFPI) today signed a definitive agreement to buy idX Corp. in a deal valued at about $68 million.

Under terms of the agreement, Universal Forest Products will acquire all outstanding shares of parent company idX Holdings Inc., a producer of retail merchandising products. The acquisition moves Universal Forest Products into adjacent markets with new products in a $6 billion industry and offers idX access to greater production capacity, plus new customers and markets.

The deals should close by the end of the third quarter, the company said.

The purchase price is “subject to adjustments for idX’s transaction expenses and net working capital at closing,” according to a filing with federal securities regulators. Universal Forest Products is also paying $94.5 million “to retire outstanding debt and certain other obligations.”

The St. Louis, Mo.-based idX was founded in 1999 and has a network of more than 20 manufacturing, management and sales facilities in North America, Europe and Asia. The company recorded 2015 sales of about $303 million.

“idX is a dynamic company that creates and installs highly customized merchandising solutions for some of the world’s most renowned brands,” Universal Forest Products CEO Matthew Missad said. “idX brings to Universal the opportunity to supply some of their operations with products we currently manufacture, to grow adjacent business and capabilities, and to serve new customers and markets. idX’s growth strategies, including their focus on international business and on new end-markets, align with our growth objectives.”

Citing the seasonality of idX’s business, the company said that the acquisition will not contribute significantly to Universal Forest Products’ profitability for the rest of 2016. The company targets $25 million to $28 million in EBITDA with about $6 million in depreciation and amortization for 2017.

Read 2269 times
SUBSCRIBE TO MIBIZ TODAY FOR WEST MICHIGAN’S FINEST BUSINESS NEWS REPORTING >