GRAND RAPIDS — Wood products company UFP Industries Inc. recently announced the acquisition of a business that specializes in developing and testing high-performance chemicals for wood preservation.
Last week, UFP Industries (NASDAQ: UFPI) — formerly known as Universal Forest Products Inc. — announced that its UFP Retail Solutions business segment acquired Matthew, N.C.-based Fire Retardant Chemical Technologies LLC (FRCT), which develops fire retardants and water repellents.
Founded in 2014, FRCT found a niche in new and cost-efficient technologies for wood preservation. The company amassed $6.4 million in sales in 2019.
“(FRCT Founder) Dr. (Futong) Cui and his team have earned the respect of everyone in the wood products industry for the technologies they have developed,” Allen Peters, president of UFP Retail Solutions, said in a statement.
“These technologies will join our growing portfolio of products and reinforce our commitment to innovation. We expect FRCT’s fire-retardant products to be among the fastest growing in the wood preservation market, as they present a compelling value compared to other fire-resistant materials in the market.”
Through the merger, Cui said FRCT would gain a better idea of market needs in addition to accessing the resources required to develop new technologies and bring them to market quicker. Cui also said FRCT has several new products in development that the company will release soon.
The acquisition is the latest in an active year on the M&A front for UFP Industries.
Over the summer, UFP Industries acquired Rancho Cucamonga, Calif.-based T&R Lumber Co., which manufactures and distributes products for nurseries, including growing containers, pots, trays, wooden stakes, trellises and tree boxes.
UFP Industries has also weathered the COVID-19 pandemic, staying active amid industry shutdowns and recording record net earnings for the second quarter of 2020.
Net product sales were driven by success in the company’s retail segment, where UFP Industries saw a 16 percent jump in new products sales.