GRAND RAPIDS, Mich.--(BUSINESS WIRE)--Universal Forest Products, Inc. (NASDAQ: UFPI) today announced that one of its subsidiaries has acquired an 80 percent interest in certain assets of Packnet, Ltd., with the ability to purchase the remaining 20 percent in three years. Packnet is a supplier of industrial packaging and services based in Eagan, Minn. The acquisition further expands Universal’s industrial business and its manufacturing and design capabilities.
Packnet designs, manufactures and supplies packaging products and related accessories to provide total packaging solutions to a growing list of customers. Founded in 1987, it had sales of nearly $9 million in the past year. It operates out of a single location in Eagan, Minn. Owner and CEO Mike Nyberg, will stay on at the helm of the operation.
“Mike and his team have built a strong company with a stellar reputation,” said Universal CEO Matthew J. Missad. “Their strategy of solving customer problems and challenges with innovative designs and products provides an additional platform for growth with our existing and future customers. We are excited to share ideas and to improve our respective businesses in the years to come.”
“We look forward to becoming a part of Universal Forest Products and contributing to their strong growth,” Nyberg said. “This is a great opportunity to take Packnet to the next level and to enhance our mutual success.”
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.