GRAND RAPIDS — An affiliate of Universal Forest Products Inc. (NASDAQ: UFPI) has acquired Hartford, Wis.-based Pallet USA LLC, expanding Universal’s industrial product-capacity and services in the Midwest.
Pallet USA operates one facility that manufactures pallets and crates. The company also distributes industrial lumber and sheet stock and provides services such as heat treating, pallet removal and recycling, custom product design, delivery and managed inventory programs.
“The acquisition allows us to grow our presence in the Milwaukee area and will help us serve manufacturers that have a larger regional, national or international presence.” Matthew Missad, CEO of Universal Forest Products, said in a statement. “Pallet USA also operates a profitable pallet reclamation business, providing customers with a cost-effective solution for their wood pallet needs, that could be scaled to other UFP facilities.”
Bruce Church, president and CEO of Pallet USA, will remain with the operation as general manager of operations through 2019, then transition into a consulting role to assist with new sales efforts to national customers.
Terms of the deal were not disclosed.
Universal, a holding company whose subsidiaries supply wood, wood composite and other products, is headquartered in Grand Rapids with affiliates throughout North America, Europe, Asia and Australia.
Last month, the company announced plans to restructure. The company will become known as UFP Industries Inc. as of next year. Effective Jan. 1, 2020, the company will be organized into three segments around the markets it serves: UFP Retail, UFP Construction and UFP Industrial.
Each of these three segments currently exceeds $1 billion in annual revenue, according to a statement. Under the new structure, the company hopes to double sales and profits in each segment over the next 10 years.
Missad said that while the name Universal Forest Products is a source of pride for employees, it no longer accurately describes what the company does.
“UFP Industries, Inc. is a better fit for what we do and for our new organizational structure," he said. “Our companies serve a diverse group of customers, and our products include many materials, not just wood.”
UFP Industries will continue to trade under the ticker symbol UFPI.