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UFP Industries takes over pallet producer PalletOne

12.01.2021 − 

UFP Industries (UFPI) is taking over the US pallet producer PalletOne for approximately US$232m on a debt-free basis. UFPI’s board of directors gave the go-ahead for a corresponding agreement for acquiring 100 % of PalletOne’s equity capital on 10 December. In it, UFPI also declares its willingness to pay US$18m for PalletOne’s latest investment expenditure. The transaction was subject to adjustment of the net working capital. According to UFPI, the purchase price will be paid from the company’s cash reserves, which currently amount to more than US$400m.

PalletOne describes itself as the biggest pallet producer in the USA, with an annual processing capacity of around 200m bdft of sawnwood. PalletOne is represented with 19 facilities in the USA in the states of Alabama (2), North Carolina (4), Florida (2), Georgia (3), Texas (3), Indiana (1), Virginia (1), Maine (1), and Wisconsin (2). PalletOne also operates its own sawmills at four locations. Combined with the group’s manufacturers of impregnated wood products Sunbelt Forest Products with four works Florida and Alabama, roughly 500m bdft are processed annually. PalletOne has a total of some 1,500 employees at a total of 22 facilities.

By taking over PalletOne, UFPI continues to expand the activities of its “Industrial” division. The group had only acquired North East Texas Pallet Inc. of Clarksville, Texas, in October 2017. Through all of its divisions, UFPI is currently represented in the USA with 127 facilities, in Australia and Mexico with four, and in China with three. UFPI operates one facility each in the UK, India und Japan as well as a joint venture in Italy in the form of the packaging and logistics company Job Service.

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