GRAND RAPIDS — Wood products manufacturer UFP Industries Inc. announced on Monday that one of its wholly owned subsidiaries has signed an agreement to purchase the assets of a South Carolina-based wood treating operation.
Sunbelt Forest Products Corporation, a subsidiary of UFP Industries based in Barstow, Fla. that stands as one of the region’s leading producers of pressure-treated lumber and residential fencing, will acquire Greer, S.C.-based Spartanburg Forest Products for $17 million.
The deal includes Spartanburg’s property, plants and equipment. The company has a workforce of 300 employees.
Spartanburg and its affiliates operate four wood treating facilities and one manufacturing facility that are primarily concentrated in the Mid-Atlantic region, combining for $543 million in sales for 2020.
“Spartanburg Forest Products has a great reputation for quality and service,” Ken DelleDonne, president of Sunbelt Forest Products, said in a statement. “Our customers are asking us to do more and the addition of the Spartanburg team will help us better serve our customers’ needs. We look forward to working with them and creating more success stories together.”
Spartanburg President and CEO Stephen Michael will remain in a consultative role to help transition the company to Sunbelt, according to a statement.
“The combination of Spartanburg and Sunbelt will generate operational efficiencies that will allow both companies to provide greater value to our customers, as well as expand our capacity and geographic reach,” Michael said. “We’re excited to join the Sunbelt team.”
The deal is expected to close by the end of first quarter 2021.
UFP Industries (Nasdaq: UFPI) completed a string of acquisitions throughout 2020, the latest of which occurred in December when the company purchased Florida-based industrial pallet manufacturer PalletOne Inc.
Led by its residential segment, UFP Industries recorded $1.49 billion in net sales for third quarter 2020 ending Sept. 26, 2020. This was a 28-percent increase from the same period last year and it stood as the best quarterly earnings report in UFP’s 65-year history.
The company expects to release its fourth quarter and year-end earnings results at 4:30 p.m., Wednesday, Feb. 24.