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UFP Industries (UFPI) Expands Footprint With Three Buyouts

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UFP Industries, Inc. (UFPI - Free Report) recently announced that affiliates of UFP Construction LLC acquired the assets of Atlantic Prefab, Inc.; Exterior Designs, LLC; and Patriot Building Systems, LLC. Following the news, the company’s shares gained 1.3% on Nov 16. Notably, its shares have gained 24.9% in the past six months, compared with the industry’s rally of 43.5%.

Following the deal, UFP Industries presence in the Northeast market will increase as these three companies serve the commercial and multi-family construction markets in the Northeast. It is wotrth mentioning that the companies generated sales of nearly $28 million in the trailing 12 months through September.

Atlantic Prefab, which produces prefabricated steel wall panels and light gauge metal trusses, will reduce UFP Construction project timelines. Moreover, Exterior Designs is a major installer of siding and exterior cladding like fiber cement, ACM (aluminum composite material) panels, phenolic panels, and EIFS (exterior insulation and finish systems).

Meanwhile, Patriot Building Systems provides commercial and multi-family framing services in the Northeast, where UFP Industries does not provide service.

UFP Industries’ CEO Matthew J. Missad said “The acquisition of these three complementary companies is an example of how our reorganization is helping us grow and bring more value-added products and services to our construction customers. These companies have outstanding reputations, and we’re excited that they’ve joined the UFP family of companies.”

Acquisition Strategies Drive Growth

UFP Industries' has been focusing on buyouts to strengthen its product portfolio and leveraging new business opportunities. On Jun 14, 2020, the company acquired the operating assets of T&R Lumber Company and its affiliates, thereby enhancing its agricultural product offerings and customer base across the country. On Mar 16, it acquired the operating assets of Quest Design & Fabrication and Quest Architectural Millwork. Quest designs fabricates and installs millwork and case goods for a number of commercial uses that include builder’s sales centers, design studios, hospitality, corporate offices and healthcare.

Again, on Sep 16, 2019, one of its affiliates acquired Hartford, WI-based Pallet USA, LLC. Also, on Aug 14, 2019, it acquired Bonner, MT-based Northwest Painting, Inc. These buyouts are expected to expand its value-added offerings, and market presence in Midwest and Northwest.

Zacks Rank

UFP Industries — which shares space with Trex Company, Inc. (TREX - Free Report) , Louisiana-Pacific Corporation (LPX - Free Report) and Weyerhaeuser Company (WY - Free Report) in the Zacks Building Products - Wood industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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