GRAND RAPIDS, Mich.--(BUSINESS WIRE)--Universal Forest Products, Inc. (NASDAQ: UFPI) today announced that one of its subsidiaries has purchased a 50 percent ownership interest in Upshur Forest Products, LLC, which owns sawmill operations in Gilmer, Texas. The transaction closed March 27, 2014.
The acquisition is intended to help grow Universal’s industrial business in East Texas and western Louisiana, supplying raw material to nearby Universal affiliates as well as to new industrial operations that will be set up at one of the mill locations. Sales in 2015 are estimated to be $10 million.
“Among our strategic goals is to grow our industrial business, and we’re doing that in a steady manner by adding to existing industrial operations and growing our presence in areas we haven’t been able to serve economically,” said Universal CEO Matthew J. Missad. “Our new strategic partnership with Upshur will allow us to add industrial manufacturing operations adjacent to the mill and serve customers in East Texas and western Louisiana at a substantial freight savings. In addition, we will lock in our supply of specialty mill items and certain hard-to-find dimensions and grades.”
UNIVERSAL FOREST PRODUCTS, INC.
Universal Forest Products, Inc. is a holding company that provides capital, management and administrative resources to subsidiaries that supply wood, wood composite and other products to three robust markets: retail, construction and industrial. Founded in 1955, the Company is headquartered in Grand Rapids, Mich., with affiliates throughout North America. For more about Universal Forest Products, go to www.ufpi.com.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, that are based on management’s beliefs, assumptions, current expectations, estimates and projections about the markets we serve, the economy and the Company itself. Words like “anticipates,” “believes,” “confident,” “estimates,” “expects,” “forecasts,” “likely,” “plans,” “projects,” “should,” variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. The Company does not undertake to update forward-looking statements to reflect facts, circumstances, events, or assumptions 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: fluctuations in the price of lumber; adverse or unusual weather conditions; adverse economic conditions in the markets we serve; government regulations, particularly involving environmental and safety regulations; and our ability to make successful business acquisitions. Certain of these risk factors as well as other 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.