A subsidiary of Universal Forest Products Inc. (NASDAQ: UFPI) has agreed to purchase substantially all the operating assets of Marietta, Ga.-based North American Container Corp., which makes structural packaging products.
The deal adds steel, corrugated and hardwood packaging to Universal’s portfolio of industrial products, according to a Universal Forest Products news release March 27.
North American Container Corp.’s Pal-Box.
North American Container Corp. (NACC) has nine manufacturing facilities in Georgia, South Carolina, Tennessee and Wisconsin. It had sales of approximately $71 million in 2017.
NACC offers several proprietary packaging designs and holds a number of patents. For Universal, the acquisition will allow it to enhance capacity and expand into geographic areas identified as opportunities for growth, including South Carolina and Tennessee. It also grows the company’s customer offerings and enhances manufacturing through automation, Universal’s statement said.
"This exciting opportunity will blend the best products of our two proven companies to create an industry-leading offering of structural packaging products," Universal CEO Matthew Missad said. "NACC’s proprietary agriculture boxes and crates, for example, will be of great interest to our existing customers, and our production methods will help us enhance manufacturing operations and output.
"We are impressed with the people, products, culture and leadership of NACC, and we are working toward a successful merger of our businesses and capabilities in a way that benefits customers, employees and shareholders," he added.
The purchase is scheduled to close by June 1, 2018. Terms were not disclosed in the statement.
"After more than 50 years of success, we were looking for the right opportunity to take our business to the next level for the benefit of our customers, employees and stakeholders. This merger with Universal Forest Products is that opportunity," John Grigsby, Jr., CEO of NACC, said. "We feel confident that it will provide us with the best path for ongoing success in a changing world and global marketplace. We are excited for our people and our future, and proud to become a part of the Universal family."
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 the retail, construction and industrial markets. The company was founded in 1955 and is headquartered in Grand Rapids, Mich. It has affiliates throughout North America, Australia, Europe and Asia.
North American Container Corporation was founded in 1967 in Atlanta, Georgia. In addition to its corporate headquarters and production facility at 1811 West Oak Parkway in Marietta, it also has production facilities in Calhoun, McIntyre and Newnan in Georgia; Lawrenceburg, Martin and Sharon in Tennessee; Orangeburg, S.C.; and Mayville, Wisc.