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Subsidiary of UFP Industries announces agreement to acquire the net operating assets of Spartanburg Forest Products and its affiliates
GRAND RAPIDS, Mich. (News release) -- UFP Industries, Inc. announced that one of its wholly owned subsidiaries, Sunbelt Forest Products Corporation, signed an agreement to purchase the net operating assets of Spartanburg Forest Products, Inc. and its affiliates. The purchase price for Spartanburg's property, plants and equipment is approximately $17 million. Sunbelt will also purchase Spartanburg's net working capital for an amount equal to the net book value determined on the date of closing the transaction. As of December 31, 2020, Spartanburg's net working capital totaled approximately $80 million. The transaction is expected to close by the end of the first quarter of 2021, pending customary closing conditions and regulatory approval.
Founded in 1978 and based in Greer, South Carolina, Spartanburg and its affiliates operate four wood treating facilities and one manufacturing facility, mostly in the Mid-Atlantic. The combined companies had 2020 sales of approximately $543 million. Stephen Michael, president and CEO of Spartanburg, will remain in a consultative role to help with the transition to Sunbelt, and Sunbelt plans to continue all of Spartanburg's current vendor and supplier relationships (TSOs and MSOs) after closing. "Spartanburg Forest Products has a great reputation for quality and service," said Ken DelleDonne, president of Sunbelt Forest Products. "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." "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," said Stephen Michael. "We're excited to join the Sunbelt team."
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