UFPI Affiliate Purchases Certain Assets of Container Systems, Inc.
Grand Rapids, Michigan, USA 17 March 2014 -- Universal Forest Products, Inc. (NASDAQ: UFPI) today announced that one of its subsidiaries has purchased certain assets of Container Systems, Inc. (CSI), a manufacturer of crates and containers for industrial applications and the moving-and-storage industry, located in Franklinton, N.C. The transaction closed on March 14, 2014.
CSI produces a full line of moving and storage crates, specialized crates for niche markets, and integrated packaging solutions, and is a wholesale cut-to-size panel and lumber supplier to the area's industrial customers. Sales in 2013 were approximately $3 million.
The acquisition provides a presence in the Eastern United States for Universal's Industrial Wood Industries (IWI), which supplies bulk shipping and storage bins, moving boxes, fruit and nut bins, and other specialized wood products to industrial and agricultural customers, primarily in the West. IWI shares many customers with CSI. With this move, IWI will have a presence in the East and an opportunity serve new clients and to enhance service to existing clients with locations nationwide.
"This acquisition is a perfect complement to IWI's business, and allows that affiliate to bring its strong capabilities and solutions to the Eastern Seaboard," said Universal Forest Products, Inc. CEO Matthew J. Missad, who added that UFPI's industrial business is a primary focus for growth opportunities. "Container Systems, Inc. is known as a quality panel products manufacturing company in its market and, with the resources and strengths of our IWI operations, we look forward to serving new customers in the East with the products and service they expect from a Universal company."
CSI joint-owner Scott Parsons will remain as plant manager of the Franklinton operations and employees Lyle Davis and James Boswell will serve as operations manager and account manager, respectively. "This is an exciting new chapter for the people and customers of CSI, and we're proud to now be a part of a respected international manufacturer and supplier," Parsons said.
UNIVERSAL FOREST PRODUCTS, INC. (NASDAQ: UFPI)
Universal Forest Products, Inc. is a holding company that provides capital, management and administrative resources to subsidiaries that design, manufacture and market wood and wood-alternative products for building materials retailers and wholesalers, structural lumber and other products for the manufactured housing and residential construction markets, and specialty wood packaging and components and packing materials for various industries. It has subsidiaries that provide framing services for the residential construction market in some parts of the country; that manufacture and market products used for concrete construction; and that offer lawn and garden products, such as trellises and arches, to retailers nationwide. Its consumer products operations offer a large portfolio of outdoor living products, including wood composite decking, decorative balusters, post caps and plastic lattice. Founded in 1955, Universal Forest Products is headquartered in Grand Rapids, Mich. Its subsidiaries operate facilities throughout North America. For more about Universal, go to www.ufpi.com.
Please be aware that: Any statements included in this press release that are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based on the beliefs of the Company's management as well as on assumptions made by, and information currently available to, the Company at the time such statements were made. The Company does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially from forward-looking statements are the following: adverse lumber market trends, competitive activity, negative economic trends, government regulations and weather. Certain of these risk factors and additional information are included in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.