GRAND RAPIDS — Anticipating an uptick in demand for factory-built housing, Grand Rapids-based wood products manufacturer UFP Industries Inc. announced the acquisition of one of its current vendors.
UFP announced this week that its wholly owned subsidiary UFP Distribution LLC acquired the operating assets of Haleyville, Ala.-based Shelter Products Inc., which distributes lumber, plywood and other building materials, primarily to clients in the manufactured housing space. UFP acquired Shelter Products for $6.5 million.
UFP will take over operations at Shelter Products’ 87,800-square-foot warehouse in Haleyville, which is located adjacent to an existing UFP Industries facility that manufactures trusses for manufactured-home builders.
UFP says the proximity of the two facilities are expected to create further operational synergies.
“We continue to believe the lack of affordable housing will create greater demand for factory-built housing, and Shelter Products will help us meet this demand and offer opportunities to distribute new products in the southern U.S.,” UFP Construction President Patrick Benton said in a statement.
“Shelter Products has been a terrific vendor for us for many years, and their talented team has an unmatched reputation for customer service,” he added. “This transaction, which will be seamless to customers, is another example of how UFP’s new organizational structure creates more focus on individual markets and products.”
Shelter Products President and CEO Stephen Sampson will continue to serve in a consulting role and will stay on board in his current capacity as Shelter integrates into UFP.
“We have worked closely with UFP Industries for nearly two decades and have been impressed by the company’s entrepreneurial culture and success,” Sampson said in a statement. “We are a family company, and joining UFP ensures my work family that they will not only continue to enjoy the culture they created but take advantage of more business and career opportunities in the future. We are excited to join the UFP family.”