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An affiliate of UFP Industries, Inc. (UFPI - Free Report) , UFP Packaging, LLC, acquired a manufacturer of corrugated packaging products — Titan Corrugated, Inc. and its affiliate All Boxed Up, LLC.
Titan primarily deals in boxes used in moving and storage, jumbo boxes for industrial products, corrugated shipping containers and point-of-purchase displays. All Boxed Up distributes common box sizes manufactured by Titan throughout the United States. The consolidated sales for trailing 12-months (through October 2022) totaled approximately $46.5 million.
Chuck Krawczak, vice president of UFP Packaging, stated, “We are thrilled that the Titan companies have joined UFP Packaging as our cornerstone corrugated conversion facility. Jon and his team built a model that we plan to replicate in target geographic markets where we can utilize both customer and distribution synergies.”
Focus on Inorganic Moves
Acquisitions have been UFP Industries' preferred mode of solidifying its product portfolio and leveraging new business opportunities. In the first, second and third quarter of 2022, UFPI recorded a 7%, 1% and 2% increase, respectively, in unit sales from acquisitions. Acquisitions also contributed $12 million, $3.5 million and $7.3 million to adjusted EBITDA in the first, second and third quarters, respectively.
In late June, UFP Industries acquired a 50% stake in Dempsey Wood Products, LLC, a producer of kiln-dried lumber, pallet lumber, and other industrial wood products, which are primarily used in pallet manufacturing. In May, it acquired Cedar Poly, LLC, a plastics recycler that can be used in manufacturing Deckorators decking.
UFPI acquired nine companies in 2021 and five in 2020.
Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have gained 4.1% in the past three months, outperforming the Zacks Building Products - Wood industry’s 3.7% decline. The company is benefiting from continuous improvements in its Industrial and Construction units, its diverse end markets and strategic acquisitions to broaden its footprint.
Some better-ranked stocks in the same space are CRH plc (CRH - Free Report) , Janus International Group, Inc. (JBI - Free Report) and United Rentals, Inc. (URI - Free Report) , each carrying a Zacks Rank #2 (Buy).
CRH manufactures cement, concrete products, aggregates, roofing, insulation and other building materials.
CRH’s expected earnings growth rate for 2022 is 22.1%. The Zacks Consensus Estimate for current-year and next-year earnings has improved to $3.98 and $3.43 per share from $3.46 and $3.42, respectively, over the past 30 days.
Headquartered in Temple, GA, Janus manufactures and supplies turn-key self-storage and commercial and industrial building solutions. Solid backlog levels, an impressive project pipeline, productivity improvements and commercial actions, including pricing, are expected to drive growth. The company is expected to benefit from its one-stop-shop offering with a leading market share position in self-storage doors and related design and installation services.
Janus’ earnings for 2022 are expected to rise 21%. The Zacks Consensus Estimate for current-year and next-year earnings has improved to 75 cents and 88 cents per share from 69 cents and 80 cents, respectively, over the past 30 days.
United Rentals is the largest equipment rental company in the world, with an integrated network of 1,390 rental locations in the United States, Canada and Europe.
URI’s expected earnings growth rates for 2022 and 2023 are 47.3% and 12.5%, respectively. The Zacks Consensus Estimate for current-year and next-year earnings has improved to $32.50 and $36.57 per share from $32.41 and $36.27, respectively, over the past 30 days.
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UFP Industries (UFPI) Acquires Titan Corrugated & Affiliate
An affiliate of UFP Industries, Inc. (UFPI - Free Report) , UFP Packaging, LLC, acquired a manufacturer of corrugated packaging products — Titan Corrugated, Inc. and its affiliate All Boxed Up, LLC.
Titan primarily deals in boxes used in moving and storage, jumbo boxes for industrial products, corrugated shipping containers and point-of-purchase displays. All Boxed Up distributes common box sizes manufactured by Titan throughout the United States. The consolidated sales for trailing 12-months (through October 2022) totaled approximately $46.5 million.
Chuck Krawczak, vice president of UFP Packaging, stated, “We are thrilled that the Titan companies have joined UFP Packaging as our cornerstone corrugated conversion facility. Jon and his team built a model that we plan to replicate in target geographic markets where we can utilize both customer and distribution synergies.”
Focus on Inorganic Moves
Acquisitions have been UFP Industries' preferred mode of solidifying its product portfolio and leveraging new business opportunities. In the first, second and third quarter of 2022, UFPI recorded a 7%, 1% and 2% increase, respectively, in unit sales from acquisitions. Acquisitions also contributed $12 million, $3.5 million and $7.3 million to adjusted EBITDA in the first, second and third quarters, respectively.
In late June, UFP Industries acquired a 50% stake in Dempsey Wood Products, LLC, a producer of kiln-dried lumber, pallet lumber, and other industrial wood products, which are primarily used in pallet manufacturing. In May, it acquired Cedar Poly, LLC, a plastics recycler that can be used in manufacturing Deckorators decking.
UFPI acquired nine companies in 2021 and five in 2020.
Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have gained 4.1% in the past three months, outperforming the Zacks Building Products - Wood industry’s 3.7% decline. The company is benefiting from continuous improvements in its Industrial and Construction units, its diverse end markets and strategic acquisitions to broaden its footprint.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Picks
Some better-ranked stocks in the same space are CRH plc (CRH - Free Report) , Janus International Group, Inc. (JBI - Free Report) and United Rentals, Inc. (URI - Free Report) , each carrying a Zacks Rank #2 (Buy).
CRH manufactures cement, concrete products, aggregates, roofing, insulation and other building materials.
CRH’s expected earnings growth rate for 2022 is 22.1%. The Zacks Consensus Estimate for current-year and next-year earnings has improved to $3.98 and $3.43 per share from $3.46 and $3.42, respectively, over the past 30 days.
Headquartered in Temple, GA, Janus manufactures and supplies turn-key self-storage and commercial and industrial building solutions. Solid backlog levels, an impressive project pipeline, productivity improvements and commercial actions, including pricing, are expected to drive growth. The company is expected to benefit from its one-stop-shop offering with a leading market share position in self-storage doors and related design and installation services.
Janus’ earnings for 2022 are expected to rise 21%. The Zacks Consensus Estimate for current-year and next-year earnings has improved to 75 cents and 88 cents per share from 69 cents and 80 cents, respectively, over the past 30 days.
United Rentals is the largest equipment rental company in the world, with an integrated network of 1,390 rental locations in the United States, Canada and Europe.
URI’s expected earnings growth rates for 2022 and 2023 are 47.3% and 12.5%, respectively. The Zacks Consensus Estimate for current-year and next-year earnings has improved to $32.50 and $36.57 per share from $32.41 and $36.27, respectively, over the past 30 days.