Universal Forest Products, Inc.: UFPI affiliate purchases certain assets of Container Systems, Inc.
News release
---------------AT THE COMPANY---------------
Lynn Afendoulis, Director, Corporate Communications
(616) 365-1502
FOR IMMEDIATE RELEASE
MONDAY, MARCH 17, 2014
UFPI affiliate purchases certain assets of Container Systems, Inc.
-Container manufacturer establishes eastern presence for UFPI affiliate International Wood Industries-
GRAND RAPIDS, Mich., March 17, 2014 - Universal Forest Products, Inc. (NASDAQ: UFPI) today announced that one of its subsidiaries has purchased certain assets of Container Systems, Inc. (CSI), a manufacturer of crates and containers for industrial applications and the moving-and-storage industry, located in Franklinton, N.C. The transaction closed on March 14, 2014.
CSI produces a full line of moving and storage crates, specialized crates for niche markets, and integrated packaging solutions, and is a wholesale cut-to-size panel and lumber supplier to the area's industrial customers. Sales in 2013 were approximately $3 million.
The acquisition provides a presence in the Eastern United States for Universal's Industrial Wood Industries (IWI), which supplies bulk shipping and storage bins, moving boxes, fruit and nut bins, and other specialized wood products to industrial and agricultural customers, primarily in the West. IWI shares many customers with CSI. With this move, IWI will have a presence in the East and an opportunity serve new clients and to enhance service to existing clients with locations nationwide.
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"This acquisition is a perfect complement to IWI's business, and allows that affiliate to bring its strong capabilities and solutions to the Eastern Seaboard," said Universal Forest Products, Inc. CEO Matthew J. Missad, who added that UFPI's industrial business is a primary focus for growth opportunities. "Container Systems, Inc. is known as a quality panel products manufacturing company in its market and, with the resources and strengths of our IWI operations, we look forward to serving new customers in the East with the products and service they expect from a Universal company."
CSI joint-owner Scott Parsons will remain as plant manager of the Franklinton operations and employees Lyle Davis and James Boswell will serve as operations manager and account manager, respectively. "This is an exciting new chapter for the people and customers of CSI, and we're proud to now be a part of a respected international manufacturer and supplier," Parsons said.
UNIVERSAL FOREST PRODUCTS, INC.
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 three robust markets:
retail, construction and industrial. Founded in 1955, the Company is headquartered in Grand Rapids, Mich., with affiliates 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, events, or assumptions 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 economic 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.
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