Universal Power Group, Inc. (NYSE MKT: UPG), a Texas-based distributor and supplier of batteries and related power accessories, and a third-party logistics provider, today announced the signing of a lease for a distribution center and corporate office in Coppell, Texas. With the signing of the lease, UPG will relocate its corporate headquarters from its current location in Carrollton, Texas when that lease expires in March 2013.
Universal Power Group will be the sole tenant of the 208,800 square-foot building strategically located near the DFW Airport – one of the fastest growing submarkets in the Dallas-Fort Worth area. The location provides for easy access to major highways for truck traffic and the airfreight hub at DFW.
“We are excited to be moving to our new facility as it will mark a significant improvement in efficiencies compared to our current facilities,” stated Ian Edmonds, UPG’s President and Chief Executive Officer. “As we continue to execute growth initiatives, the new location provides for greater warehouse, distribution and operating efficiencies, greater energy efficiencies and improved operating costs. Being located in a major industrial business center will allow us to attract stronger talent and also facilitates travel for our customers and employees as we grow.”
Although the new facility has a slightly smaller footprint than the current location, it allows for increased overall capacity through improved layout, greater racking capabilities and office spaces to accommodate current sales and operating personnel with additional room for expansion. When considering the effects of lease payments and facility improvements, management believes that the overall cost of the new facility is comparable to the current facility while offering much greater capacity and operating efficiencies.
As part of the Company’s initiative to increase its efficiency and reduce its carbon footprint, UPG is currently in the process of qualifying as an “Energy Star Partner.” Built in 2000, the new facility is more energy efficient and will be equipped with a new R-20 roof and T5 lighting, which will reduce operating costs and decrease carbon emissions. Also as part of the lease agreement, the landlord will be upgrading a number of items including the offices and exteriors, and the installation of fans in the warehouse to enhance the performance of the heating and cooling systems. In total, the landlord has agreed to provide these improvements at a total cost of approximately $1 million, the cost of which will be amortized over the term of the 10-year lease.