GRAND RAPIDS TWP. — Wood products and building materials manufacturer UFP Industries Inc. announced that it has purchased an Iowa-based plastic recycler.
Through its affiliate, Deckorators Inc., which specializes in composite decking and railing, UFP Industries purchased Tipton, Iowa-based Cedar Poly LLC for $17 million, which includes incentive payments of up to $1.5 million over three years for meeting specified performance goals.
As a full-service plastic recycler, Cedar Poly should make sourcing for composite decking material easier for Deckorators, according to company officials. In 2021, Cedar Poly recorded sales of around $17.3 million.
“Cedar Poly allows us to vertically integrate our sourcing of recycled polymers and increase our use of post-industrial waste materials in our industry-leading products without compromising quality,” Deckorators Vice President Landon Tarvin said in a statement. “Growing our Deckorators product line using more sustainable raw materials is a key objective and enhances the overall value to our customers and our shareholders.”
As demand for home improvement and renovation materials booms, affiliates like Deckorators have been a boon for UFP Industries. The decking market also is poised to double in size over the next five to seven years, according to industry research.
“Joining the UFP family of companies will give us more resources to accelerate our growth,” said Scott Rogers, vice president of Cedar Poly. “We’ll also have the ability to work hand-in-hand with the Deckorators team to innovate and improve the best composite decking in the industry. Our team is thrilled about this new chapter in our business and ready to capitalize on all the opportunities this creates for our customers and employees.”