UFP Industries acquires a 50 percent stake in Dempsey Wood Products, LLC
UFP Industries acquires a 50 percent stake in Dempsey Wood Products, LLC,
providing additional industrial wood sourcing capacity to support growth
GRAND RAPIDS, Mich., Monday, June 27, 2022 – UFP Industries (Nasdaq: UFPI) today announced that its affiliate, PalletOne, Inc., has acquired a 50 percent equity stake in Dempsey Wood Products, LLC. The purchase agreement includes options for PalletOne to purchase the remaining 50 percent of Dempsey after three years.
Founded in 1988 by Ronald Dempsey, Dempsey Wood Products produces kiln-dried lumber, pallet lumber, and other industrial wood products from a single location in Orangeburg, South Carolina. Dempsey had 2021 sales of $68.9 million, and its management team, including Ronald Dempsey and his son, Parker Dempsey, will continue in management roles.
The industrial lumber that Dempsey produces is a key product for pallet operations and has been in short supply as larger mills produce less of this type of lumber. PalletOne’s investment in Dempsey helps it secure and grow a critical long-term supply source. In 2021, five of Dempsey’s 10 largest customers were UFP affiliates, and nearly 40 other UFP locations could be served by Dempsey.
“Dempsey is led by an experienced team that has produced strong and stable results for more than four decades,” said Howe Wallace, president of PalletOne. “They’ve been a trusted supplier of ours for many years, and this investment will strengthen our ties, improve our work efficiencies and help satisfy our increasing need for lumber in this market.”
“Having supplied UFP companies for many years, we’re proud to join forces and contribute to their future growth plans,” said Parker Dempsey. “Together we can expand our capacity and industrial offerings. This gives our company and our employees exciting new growth opportunities.”
UFP Industries, Inc.
UFP Industries is a holding company whose operating subsidiaries – UFP Industrial, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Michigan, with affiliates in North America, Europe, Asia and Australia. For more about UFP Industries, go to www.ufpi.com.
Headquartered in Bartow, Florida, PalletOne Inc. is North America’s largest, single-source, asset-based pallet manufacturer. The company is an affiliate of UFP Industrial, which operates more than 70 company-owned wood packaging and pallet manufacturing operations across the U.S. PalletOne manufactures new pallets, provides pallet repair programs, recycles used pallets, and produces a variety of other wood products. The company directly controls material supply, production, distribution processes, and labor resources.