UFP Industries acquires Cedar Poly
UFP Industries ( UFPI) and its composite decking brand, Deckorators, Inc., have acquired Cedar Poly LLC, for $17 million.
The purchase price includes incentive payments of up to $1.5 million over three years if Cedar Poly meets certain performance goals, UFPI said.
Founded in 2007 and based in Tipton, Iowa, Cedar Poly is a full-service recycler of high-density and low-density polyethylene (HDPE and LDPE) flakes and pellets used in various products, including composite decking.
The company also recycles corrugate and operates its own transportation fleet. Cedar Poly had 2021 sales of approximately $17.3 million and will operate in UFP’s Deckorators business unit.
The management team, including vice presidents Scott and Jeremy Rogers, will continue in management roles.
“Cedar Poly allows us to vertically integrate our sourcing of recycled polymers and increase our use of post-industrial waste materials in our industry-leading products without compromising quality,” said Landon Tarvin, vice president of Deckorators. “Growing our Deckorators product line using more sustainable raw materials is a key objective and enhances the overall value to our customers and our shareholders.”
According to industry research, the decking market is projected to double in size during the next 5-7 years, with composite decking accounting for most of that growth.
UFPI said it plans to invest in additional capabilities at Cedar Poly’s operations to serve both Deckorators and Cedar Poly’s existing customers.
“Joining the UFP family of companies will give us more resources to accelerate our growth,” Rogers said. “We’ll also have the ability to work hand-in-hand with the Deckorators team to innovate and improve the best composite decking in the industry. Our team is thrilled about this new chapter in our business and ready to capitalize on all the opportunities this creates for our customers and employees.”
Last month, UFPI reported first quarter net sales jumped 36% to a company record $2.49 billion.
UFP Retail Solutions sales, which includes Deckorators decking and accessories, increased 31% to $993 million in the first quarter.
UFP Industries is based in Grand Rapids, Mich.
