Forest products company Universal Forest Products, Inc.UFPI recently announced the deal to acquire certain assets of Robbins Manufacturing Co. Financial terms of the transaction has not been disclosed.
The Tampa, Fla.-based Robbins Manufacturing Co. is well-known for its preservative-treated wood products. The firm works through two divisions, Robbins Treating and Manufacturing. Together these divisions operate six wood treating facilities in Florida, Georgia and North Carolina.
Per the terms of the transaction, Robbins Manufacturing will continue operating its wood treating facility in Tarrytown, Fla. The remaining five facilities, with combined net sales of $83 million in 2015, will be acquired by one of the subsidiaries of Universal Forest Products. The transaction is likely to be completed in Aug 2016.
We believe the news was primarily the reason behind the roughly 2.21% hike in Universal Forest Products' share price at the end of the trading session on Jun 14.
UNIVL FST PRODS Price
Universal Forest Products' constant endeavor to expand its business through inorganic means will prove beneficial, going forward. 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 stocks worth mentioning in the industry include Louisiana-Pacific Corp. LPX , Armstrong Flooring, Inc. AFI and Boise Cascade Company BCC . While Louisiana-Pacific sports a Zacks Rank #1 (Strong Buy), both Armstrong Flooring and Boise Cascade carry the same Zacks Rank as Universal Forest Products.
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