UFPI affiliate purchases interest in Upshur Forest Products, LLC
Monday, March 31, 2014
– Operations will help expand the Company's industrial business in East Texas and Louisiana –
GRAND RAPIDS, Mich., March 31, 2014 – Universal Forest Products, Inc. (NASDAQ: UFPI) today announced that one of its subsidiaries has purchased a 50 percent ownership interest in Upshur Forest Products, LLC, which owns sawmill operations in Gilmer, Texas. The transaction closed March 27, 2014.
The acquisition is intended to help grow Universal's industrial business in East Texas and western Louisiana, supplying raw material to nearby Universal affiliates as well as to new industrial operations that will be set up at one of the mill locations. Sales in 2015 are estimated to be $10 million.
"Among our strategic goals is to grow our industrial business, and we're doing that in a steady manner by adding to existing industrial operations and growing our presence in areas we haven't been able to serve economically," said Universal CEO Matthew J. Missad. "Our new strategic partnership with Upshur will allow us to add industrial manufacturing operations adjacent to the mill and serve customers in East Texas and western Louisiana at a substantial freight savings. In addition, we will lock in our supply of specialty mill items and certain hard-to-find dimensions and grades."