Forest products company Universal Forest Products, Inc.UFPI announced the second acquisition deal in a week to buy Idaho Western, Inc. Financial terms of the transaction have not been disclosed.
The Nampa, ID-based Idaho Western, Inc. is a well-known distributor of products, including lumber, plywood, siding and doors, etc. It serves a vast clientele in the building materials, manufactured housing and recreational vehicle industries.
Per the terms of the transaction, Idaho Western, Inc. will be acquired by one of the subsidiaries of Universal Forest Products. The company anticipates completing the purchase of Idaho Western's outstanding shares, worth $11.5 million, by Jul 1, 2016. The acquired assets will be consolidated with Universal Forest Products' Caldwell, Idaho operation. The latter is primarily engaged in supplying lumber products to the manufactured housing and recreational vehicle industries.
We believe Universal Forest Products' constant endeavor to expand its business through inorganic means will prove beneficial, going forward. The acquired assets of Idaho Western, with annual sales of roughly $21 million, will strengthen the company's position in the manufactured housing and retail markets. Also, the news seems to be the primary reason behind the 0.5% hike in Universal Forest Products' share price at the end of the trading session on Jun 21.
UNIVL FST PRODS Price
Earlier in June, the company had signed a deal to acquire certain assets of Robbins Manufacturing Co. The acquired assets of Robbins Manufacturing will strengthen the company's position in the treated wood products market in the United States. In 2015, the company had acquired assets of Rapid Wood Mfg. and Integra Packaging Proprietary, to expand its lumber products market and wood specialty packaging business, respectively.
With a market capitalization of $1.8 billion, Universal Forest Products currently carries a Zacks Rank #2 (Buy). Other similarly-ranked stocks in the industry include Louisiana-Pacific Corp. LPX , Armstrong Flooring, Inc. AFI and Boise Cascade Company BCC .