Universal Forest Products, Inc. (Nasdaq: UFPI) today announced that a subsidiary of the Company has purchased certain assets of Haleyville, Ala.-based MSR Forest Products, LLC, a supplier of roof trusses and cut-to-size lumber to the region’s manufactured housing producers.
The purchase was completed on May 16, 2012. The move allows Universal to enhance its capacity utilization and reduce costs as the Company merges its existing Haleyville, Ala., operations with the operations of MSR. In addition to its Alabama facility, MSR has a plant in Waycross, Ga., which also is a part of the transaction. In 2011, MSR had annual sales of $10 million.
“MSR has been a strong company that has grown its success with great determination and skill,” said Matthew J. Missad, CEO of Universal Forest Products, Inc. “However, with shrinking volume in the manufactured housing arena, it was difficult to maintain efficiencies and create profitable business. This move will benefit both companies. In addition, it allows Universal to underscore our commitment to maintain our leadership position in the industry in which we got our start, manufactured housing.”
“We will grow upon MSR’s long history of success and we will serve their customer base seamlessly, offering the quality and service for which Universal is known,” Missad added.Said Richard Roberson, managing partner of MSR: “We entered into this agreement because we knew our valued customers would be well-served by Universal, which has grown its reputation for delivering excellence over nearly six decades. This is the right move for the industry, for our company and for the customers we’ve proudly served for so many years.” Roberson and another MSR principal, Eddie Gamble, will stay on as consultants to the Universal operation for five years. UNIVERSAL FOREST PRODUCTS, INC. Universal Forest Products, Inc. is a holding company that provides capital, management and administrative resources to subsidiaries that design, manufacture and market wood and wood-alternative products for DIY/retail home centers and other retailers, structural lumber products for the manufactured housing industry, engineered wood components for residential and commercial construction, specialty wood packaging and components for various industries, and forming products for concrete construction. The Company's consumer products subsidiary offers a large portfolio of outdoor living products, including wood composite decking, decorative balusters, post caps and plastic lattice. Its lawn and garden group offers an array of products, such as trellises and arches, to retailers nationwide. Universal’s subsidiaries also provide framing services for the site-built construction market. Founded in 1955, Universal Forest Products is headquartered in Grand Rapids, Mich., with operations throughout North America. For more about Universal Forest Products, go to www.ufpi.com. 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 about the markets we serve, the economy and the company itself. Words like “anticipates,” “believes,” “confident,” “estimates,” “expects,” “forecasts,” “likely,” “plans,” “projects,” “should,” variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. The Company does not undertake to update forward-looking statements to reflect facts, circumstances, events, or assumptions that occur after the date the forward-looking statements are made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially from forward-looking statements are the following: fluctuations in the price of lumber; adverse or unusual weather conditions; adverse conditions in the markets we serve; government regulations, particularly involving environmental and safety regulations; and our ability to make successful business acquisitions. Certain of these risk factors as well as other risk factors and additional information are included in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.