UFPI acquiring PalletOne
Along with major pallet production, PalletOne brings five pressure-treating facilities.
Building products manufacturer UFP Industries (UFPI) announced that is acquiring PalletOne, Inc. for approximately $232 million.
This price assumes a cash-free, debt-free balance sheet. UFP also agreed to pay $18 million for PalletOne’s recent capital expenditures. The transaction is expected to close on Dec. 28, The purchase price will be funded using the company’s cash reserves, which currently total more than $400 million, UFPI said.
Based in Bartow, Fla., PalletOne is a leading manufacturer of new pallets in the U.S., with 17 pallet manufacturing facilities in the southern and eastern regions of the country. The company also supplies other specialized industrial packaging, including custom bins and crates.
Also, PalletOne’s Sunbelt Forest Products subsidiary operates five pressure-treating facilities in the Southeastern U.S.
PalletOne and its affiliates had 2019 sales and adjusted EBITDA of $525 million and $37 million, respectively, and trailing 12-month sales and adjusted EBITDA through October 2020 of $672 million and $44 million, respectively. The PalletOne management team, including President Howe Wallace, will continue to lead the company.
UFPI CEO Matthew Missad said this move is the sixth and largest acquisition by UFPI this year.
“PalletOne brings a strong brand, a new customer base, and operating excellence, which drive us closer to our goal of becoming the preferred global packaging solutions provider and preferred wood preserver in the U.S.,” Missad said.
UFPI is based in Grand Rapids, Mich.