Markets

Universal Forest to Buy Few Assets of Robbins Manufacturing

An image of a few devices next to a stock chart
Credit: Shutterstock photo

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

UNIVL FST PRODS Price | UNIVL FST PRODS Quote

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

UNIVL FST PRODS (UFPI): Free Stock Analysis Report

LOUISIANA PAC (LPX): Free Stock Analysis Report

BOISE CASCADE (BCC): Free Stock Analysis Report

ARMSTRONG FLOOR (AFI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

UFPI BCC LPX AFI

Other Topics

Stocks

Latest Markets Videos