GRAND RAPIDS, Michigan, May 09, 2022 (GLOBE NEWSWIRE) — UFP Industries (UFPI) today announced that its subsidiary, Deckorators, Inc., has acquired Cedar Poly LLC, for $17 million. The purchase price includes incentive payments of up to $1.5 million over three years if Cedar Poly achieves certain performance goals.
Founded in 2007 and based in Tipton, Iowa, Cedar Poly is a full-service recycler of high- and low-density polyethylene (HDPE and LDPE) flakes and pellets used in a variety of products, including composite decking. The company also recycles corrugated cardboard and operates its own transport fleet. Cedar Poly had revenue of approximately $17.3 million in 2021 and will operate in UFP’s Deckorators business unit. The company’s management team, including Vice Presidents Scott and Jeremy Rogers, will continue to hold leadership positions.
“Cedar Poly allows us to vertically integrate our recycled polymer sourcing and increase our use of post-industrial waste in our industry-leading products without compromising quality,” said Landon Tarvin, vice president of Deckorators. “Developing our Deckorators product line using more sustainable raw materials is a key objective and enhances overall value for our customers and shareholders.”
According to industry research, the decking market is expected to double in size over the next 5-7 years, with composite decking accounting for most of this growth. UFP plans to invest in additional capacity in Cedar Poly’s operations to serve both Deckorators and existing Cedar Poly customers.
“Joining the UFP family of companies will give us more resources to accelerate our growth,” said Scott Rogers, vice president of Cedar Poly. “We will also have the opportunity to work hand in hand with the Deckorators team to innovate and improve the best composite decking in the industry. Our team is excited about this new chapter of our business and ready to capitalize on all the opportunities it creates for our customers and employees.
UFP Industries, Inc.
UFP Industries is a holding company whose operating subsidiaries – UFP Industrial, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other applications industries around the world. Founded in 1955, the company is headquartered in Grand Rapids, Michigan, with subsidiaries in North America, Europe, Asia and Australia. To learn more about UFP Industries, visit www.ufpi.com.
Deckorators, the first name in decking, railing and accessories and originator of the round aluminum baluster, is a brand of UFP Retail Solutions, LLC, a UFP Industries company. Deckorators launched the low-maintenance aluminum baluster category with the Classic Series and has since led the industry with many new and innovative decking and railing products.
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 regarding the markets we serve, the economy and society itself. . Words like “anticipate”, “believe”, “confident”, “estimate”, “expect”, “anticipate”, “likely”, “plan”, “project”, “should”, variations of these words and similar expressions identify these forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict regarding the timing, extent, likelihood and degree of occurrence. The Company undertakes no obligation to update forward-looking statements to reflect facts, circumstances, events or assumptions that occur after the date on which the forward-looking statements are made. Actual results could differ materially from those included in these forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Among the factors that could cause actual results to differ materially from the 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, including environmental and safety regulations; and our ability to make successful business acquisitions. Some of these risk factors and other risk factors and additional information are included in the Company’s reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission.
—————IN THE BUSINESS—————
Vice President, Communications and Investor Relations