We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Universal Forest Expands Business Scope, To Buy idX Corp
Read MoreHide Full Article
Forest products company Universal Forest Products, Inc. (UFPI - Free Report) announced that it is set to acquire St. Louis, MO.-based custom merchandising solutions provider, idX Corp. Financial terms of the transaction have not been undisclosed.
As revealed, Universal Forest Products will acquire all the outstanding shares of idX Corp’s holding company, idX Holdings, Inc. idX Corp. is an internationally recognised firm in the merchandising solutions market, worth $6 billion. The firm generated sales of roughly $303 million in 2015 and has manufacturing, program management and sales facilities in excess of 20 in various countries including North America, Europe and Asia.
This acquisition will add new product portfolio and new customer base to Universal Forest Products’ existing businesses. Also, the addition of skilled workforce of idX will allow the company to penetrate smoothly in the new end markets.
Universal Forest Products anticipates completing the purchase of idX Holdings’ outstanding shares by the end of third quarter 2016. While no significant impact is expected on 2016 results, the company anticipates the acquired assets to generate approximately $25−$28 million in earnings before interest, tax, depreciation and amortization and incur roughly $6 million in depreciation and amortization expenses in 2017.
We believe Universal Forest Products’ constant endeavor to expand its business through inorganic means will prove beneficial, going forward. Earlier in June, the company had signed a deal to acquire Idaho Western, Inc. and certain assets of Robbins Manufacturing Co. Idaho Western, Inc. is a well-known distributor of products, including lumber, plywood, siding and doors among others, while Robbins Manufacturing Co. is well-known for its preservative-treated wood products. The company believes that acquisition of Idaho Western and certain assets of Robbins Manufacturing Co. will boost its revenue by $100 million annually.
With a market capitalization of $2.2 billion, Universal Forest Products currently sports a Zacks Rank #1 (Strong Buy). Other favorably ranked stocks in the industry include Norbord, Inc. , Potlatch Corporation (PCH - Free Report) and Louisiana-Pacific Corp. (LPX - Free Report) . While Norbord and Potlatch sport the same Zacks Rank as Universal Forest Products, Louisiana-Pacific carries a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Universal Forest Expands Business Scope, To Buy idX Corp
Forest products company Universal Forest Products, Inc. (UFPI - Free Report) announced that it is set to acquire St. Louis, MO.-based custom merchandising solutions provider, idX Corp. Financial terms of the transaction have not been undisclosed.
As revealed, Universal Forest Products will acquire all the outstanding shares of idX Corp’s holding company, idX Holdings, Inc. idX Corp. is an internationally recognised firm in the merchandising solutions market, worth $6 billion. The firm generated sales of roughly $303 million in 2015 and has manufacturing, program management and sales facilities in excess of 20 in various countries including North America, Europe and Asia.
This acquisition will add new product portfolio and new customer base to Universal Forest Products’ existing businesses. Also, the addition of skilled workforce of idX will allow the company to penetrate smoothly in the new end markets.
Universal Forest Products anticipates completing the purchase of idX Holdings’ outstanding shares by the end of third quarter 2016. While no significant impact is expected on 2016 results, the company anticipates the acquired assets to generate approximately $25−$28 million in earnings before interest, tax, depreciation and amortization and incur roughly $6 million in depreciation and amortization expenses in 2017.
We believe Universal Forest Products’ constant endeavor to expand its business through inorganic means will prove beneficial, going forward. Earlier in June, the company had signed a deal to acquire Idaho Western, Inc. and certain assets of Robbins Manufacturing Co. Idaho Western, Inc. is a well-known distributor of products, including lumber, plywood, siding and doors among others, while Robbins Manufacturing Co. is well-known for its preservative-treated wood products. The company believes that acquisition of Idaho Western and certain assets of Robbins Manufacturing Co. will boost its revenue by $100 million annually.
UNIVL FST PRODS Price
UNIVL FST PRODS Price | UNIVL FST PRODS Quote
Zacks Rank & Other Stocks to Consider
With a market capitalization of $2.2 billion, Universal Forest Products currently sports a Zacks Rank #1 (Strong Buy). Other favorably ranked stocks in the industry include Norbord, Inc. , Potlatch Corporation (PCH - Free Report) and Louisiana-Pacific Corp. (LPX - Free Report) . While Norbord and Potlatch sport the same Zacks Rank as Universal Forest Products, Louisiana-Pacific carries a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>