Universal Forest Products, Inc.
) recently announced to have signed an agreement, through one of
its subsidiaries, to acquire some assets of SE Panel and Lumber
Supply. Financial terms of the transaction have not been
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SE Panel and Lumber Supply is a South Daytona, Fla.-based
distributor of Olympic Panel overlay concrete forming panels and
commodity lumber products. Key end markets served include
concrete forming and construction industries.
The transaction is anticipated to be complete by mid-Nov 2013.
Universal Forest Products will gain from easy accessibility of
the acquired assets to end markets served, especially the
southeastern region of the United States.
Universal Forest Products has compelling long-term growth
prospects. The company looks forward to improving its top-line
growth through accretive acquisitions and addition of new
customers and products to its portfolio. Revenue generation is
targeted to reach $3 billion with operating margins at normal
historical levels by 2017.
The Zacks Consensus Estimate for Universal Forest Products is
currently pegged at $1.74 for year 2013 and at $2.63 for year
2014, representing year-over-year growth of 62.3% and 51.2%,
Universal Forest Products is a large player in the lumber supply
chain and has a market capitalization of $778 million. The stock
currently holds a Zacks Rank #3 (Hold). Other stocks to watch out
for in the industry are
Boise Cascade Company
), with a Zacks Rank #1 (Strong Buy) while
Armstrong World Industries, Inc.
), each come with a Zacks Rank #2 (Buy).