GRAND RAPIDS, Mich. (News release) -- UFP Industries announced that its affiliate, UFP Packaging, LLC, has acquired Advantage Label & Packaging, Inc. (Advantage Label), a provider of labels and related equipment used in industrial packaging, for approximately $16 million. The transaction also includes $2.9 million for related real estate as well as incentive payments of up to $4.5 million over five years if certain performance goals are met.
Founded in 1996 and based in Grand Rapids, Michigan, Advantage Label provides blank and customized labels, printers, label applicators and other packaging supplies. Key industries served by the company include beer and beverage; body armor; food production and processing; greenhouse and nursery; hobby and craft; manufacturing; and automotive. The company had trailing 12-month sales through November 2021 of approximately $19.8 million. Advantage Label's former shareholder group and management team, including President Brad Knoth and Sales Manager TJ Long, will continue in leadership roles.
"Advantage Label's full suite of labeling solutions, including equipment like Line Boss®, a proprietary label application machine for agricultural containers, expands UFP's ability to provide customers a broad spectrum of industrial packaging products," said Chuck Krawczak, vice president of UFP Packaging. "Companies associated with packaging and tracking packages are growing quickly, and the addition of Advantage Label will allow us to participate in that growth."
Brad Knoth added, "I am proud of the successful team at Advantage Label and am excited by the opportunities this transaction offers us. By joining the UFP family of companies, Advantage Label can make investments that will expand our capacity and reach. We look forward to contributing to UFP's mission to become the leading global packaging solutions provider."