fbpx
Published in Manufacturing
UFP Industries expands global reach after affiliate acquires controlling equity position in Indian firm COURTESY PHOTO

UFP Industries expands global reach after affiliate acquires controlling equity position in Indian firm

BY Tuesday, November 23, 2021 04:03pm

GRAND RAPIDS TWP. — Wood products manufacturer UFP Industries Inc. continued its global growth by acquiring a controlling equity position in an India-based industrial packaging operation.

The Grand Rapids Township-based UFP Industries announced this week that its affiliate, UFP Global Holdings Ltd., purchased 70 percent of Ficus Pax Private Limited for $13.5 million.

Acquiring the stake in the Bangalore-based company establishes UFP’s first industrial presence in India, and comes on the heels of a few other international deals that have helped grow the wood products giant on an international scale.

“The addition of Ficus Pax gives UFP a solid foundation to grow our industrial packaging presence in India, the world’s fastest-growing economy and a strategic market for our international expansion,” Dick McBride, executive vice president of international operations for UFP, said in a statement. 

“Ficus Pax is a leader in innovation, with a talented design and engineering team and considerable experience in producing high-value packaging solutions for domestic and multinational customers,” McBride added. “We look forward to working together to grow our business with new and existing customers worldwide.”

The Indian company manufactures products that include wood pallets, crates and nail-free plywood boxes. Ficus Pax operates 10 facilities throughout the southern region of India and owns a majority stake in an additional company, Wadpack, which also manufactures industrial packaging products. Ficus Pax’s sales for the last 12 months ending August 2021 were roughly $39 million.

Wadpack Chairman and Managing Director Sandeep Wadhwa has been selected to lead Ficus Pax.

“This transaction begins an exciting new chapter for Ficus Pax and our 600-plus employees,” Wadhwa said in a statement. “The investment and support that UFP Global will provide to Ficus Pax and Wadpack will allow us to expand our sales outreach, increase our capacity, automate in ways that will improve our productivity, and gain more flexibility in sourcing materials.”

UFP Industries has also focused on international growth by steadily expanding its presence in Australia. Earlier this month, the company announced that it purchased an Australian producer of flexographic and lithographic cardboard packaging.

UFP Industries first gained a foothold in Australia through a 2015 acquisition, and has steadily bought up additional companies there.

UFP Industries CEO Matt Missad recently shared his company’s approach to international growth, telling MiBiz: “Our goal is to be a global packaging solutions provider. When we look at international, I want to make sure we’re looking at countries where we can be successful — that have the rule of law and business metrics and a business environment that is reasonably friendly.”

Read 999 times
SUBSCRIBE TO MIBIZ TODAY FOR WEST MICHIGAN’S FINEST BUSINESS NEWS REPORTING >