UFP Industries, Inc. reported that its wholly-owned subsidiary, Sunbelt Forest Products Corporation, has 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.
Founded in 1978 and based in Greer, S.C., Spartanburg and its affiliates operate four wood treating facilities and one manufacturing facility. The company has 150 employees and operations in five states.
Terms of the deal call for Sunbelt to 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 Dec. 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.
The combined companies had 2020 sales of approximately $543 million. UFP Industries said that 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 after the closing of the sale.
“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.”
Based in Bartow, Fla., Sunbelt produces pressure-treated lumber and residential fencing in the Southeast. The company has 300 employees.