- Agrees to purchase assets of Shepherd Distribution Co.-
GRAND RAPIDS, Mich., Apr 22, 2010 (BUSINESS WIRE) --Universal Forest Products, Inc. (Nasdaq: UFPI) today announced that it
is expanding its distribution business in the manufactured housing and
recreational vehicle (RV) markets with the planned addition of Shepherd
Distribution Co. to its subsidiary, UFP Distribution, LLC.
UFP Distribution expects to close within the next two weeks on the
purchase of the assets of the Elkhart, Indiana-based firm, which
distributes shingle underlayment, bottom board, house wrap, siding, poly
film and other products to manufactured housing and RV customers.
Shepherd Distribution has a history of more than 40 years of
distribution to the manufactured housing and RV markets. In the last
twelve months, it had sales of more than $12 million.
"This purchase is the next step toward our goal of adding more sales for
every manufactured home and RV that is built. With the decline in the
number of housing units manufactured, we can provide more value to our
customers and reduce their internal procurement costs," said CEO Michael
B. Glenn. "The products Shepherd brings to Universal also will help us
reach new customers with our existing products."
Universal was founded in 1955 as a wholesaler of lumber to the
manufactured housing market. Today, the Company's affiliates provide
lumber, building and related supplies to four primary markets:
DIY/retail, industrial/packaging, site-built construction and
manufactured housing.
Earlier in the year, UFP Distribution acquired certain assets of the
former Service Supply Distribution company, which distributed plumbing
and electrical supplies, water heaters, fireplace surrounds, adhesives,
and many other products to manufactured housing customers. UFP
Distribution will continue to seek distribution opportunities to better
serve its customers.
"Many of the customers of Shepherd have been mutual customers of ours
for decades. They can continue to expect the best from both Shepherd and
Universal," Mike Glenn added. "The people of Shepherd are seasoned
professionals who will continue to lead the business and contribute to
the expansion and growth of our Company as part of the UFP Distribution
management team."
"This move is an exciting chapter in the history of our company," said
Marty Rottenberg, president of Shepherd Distribution, who will join UFP
Distribution's management team. "We're proud of the relationships and
business we've built and the success we've achieved. We look forward to
continuing that success at Universal. We've known UFP for a long time as
a respected leader in the market, and we're delighted to be a part of
the Universal family of companies."
UNIVERSAL FOREST PRODUCTS, INC.
Universal Forest Products, Inc. is a holding company that provides
capital, management and administrative resources to subsidiaries that
design, manufacture and market wood and wood-alternative products for
DIY/retail home centers and other retailers, structural lumber and other
products for the manufactured housing industry, engineered wood
components for the site-built construction market, and specialty wood
packaging and components and packing materials for various industries.
Universal's subsidiaries also provide framing services for the
site-built market, and forming products for concrete construction. The
Company's consumer products subsidiary offers a large portfolio of
outdoor living products, including wood composite decking, decorative
balusters, post caps and plastic lattice. Its lawn and garden group
offers an array of products, such as trellises and arches, to retailers
nationwide. Founded in 1955, Universal Forest Products is headquartered
in Grand Rapids, Mich., with operations throughout North America. For
more about Universal Forest Products, go to www.ufpi.com.
This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act, as amended, that
are based on management's beliefs, assumptions, current expectations,
estimates, and projections about the markets we serve, the economy, and
the company itself. Words like "anticipates," "believes," "confident,"
"estimates," "expects," "forecasts," "likely," "plans," "projects,"
"should," variations of such words, and similar expressions identify
such forward-looking statements. These statements do not guarantee
future performance and involve certain risks, uncertainties and
assumptions that are difficult to predict with regard to timing, extent,
likelihood and degree of occurrence. The Company does not undertake to
update forward-looking statements to reflect facts, circumstances,
assumptions or events that occur after the date the forward-looking
statements are made. Actual results could differ materially from those
included in such forward-looking statements. Investors are cautioned
that all forward-looking statements involve risks and uncertainty.Among
the factors that could cause actual results to differ materially from
forward-looking statements are the following:fluctuations in the
price of lumber; adverse or unusual weather conditions; adverse
conditions in the markets we serve; government regulations, particularly
involving environmental and safety regulations; and our ability to make
successful business acquisitions. Certain of these risk factors as well
as other risk factors and additional information are included in the
Company's reports on Form 10-K and 10-Q on file with the Securities and
Exchange Commission.
SOURCE: Universal Forest Products
Universal Forest Products, Inc.
Lynn Afendoulis
Director, Corporate Communications
(616) 365-1502
