GRAND RAPIDS, Mich., June 27, 2022 (GLOBE NEWSWIRE) — UFP Industries (Nasdaq: UFPI) today announced that its subsidiary, PalletOne, Inc., has acquired a 50% stake in Dempsey Wood Products, LLC. The purchase agreement includes options for PalletOne to purchase the remaining 50% of Dempsey after three years.
Founded in 1988 by Ronald Dempsey, Dempsey Wood Products produces kiln-dried lumber, pallet lumber and other industrial wood products from a single location in Orangeburg, SC. Dempsey had revenue of $68.9 million in 2021, and his management team, including Ronald Dempsey and his son, Parker Dempsey, will continue to serve in leadership positions.
Industrial lumber produced by Dempsey is a key product for pallet operations and has been in short supply as larger mills produce less of this type of lumber. PalletOne’s investment in Dempsey helps it secure and develop a critical long-term source of supply. In 2021, five of Dempsey’s 10 largest customers were UFP affiliates, and nearly 40 other UFP locations could be serviced by Dempsey.
“Dempsey is led by an experienced team that has delivered strong, consistent results for more than four decades,” said Howe Wallace, president of PalletOne. “They have been our trusted suppliers for many years, and this investment will strengthen our ties, improve our work efficiency and help meet our growing need for lumber in this market.
“After supplying UFP businesses for many years, we are proud to join forces and contribute to their future growth plans,” said Parker Dempsey. “Together, we can expand our capacity and our industry offerings. This provides our company and our employees with exciting new growth opportunities.
UFP Industries, Inc.
UFP Industries is a holding company whose operating subsidiaries – UFP Industrial, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other applications industries around the world. Founded in 1955, the company is headquartered in Grand Rapids, Michigan, with subsidiaries in North America, Europe, Asia and Australia. To learn more about UFP Industries, visit www.ufpi.com.
PalletOne Inc., headquartered in Bartow, Florida, is North America’s largest single-source asset-based pallet manufacturer. The company is a subsidiary of UFP Industrial, which operates more than 70 company-owned wood packaging and pallet manufacturing plants across the United States. PalletOne manufactures new pallets, offers pallet repair programs, recycles used pallets and produces a variety of other wood products. The company directly controls material sourcing, production, distribution processes and labor resources.
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 regarding the markets we serve, the economy and society itself. . Words like “anticipate”, “believe”, “confident”, “estimate”, “expect”, “anticipate”, “likely”, “plan”, “project”, “should”, variations of these words and similar expressions identify these forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict regarding the timing, extent, likelihood and degree of occurrence. The Company undertakes no obligation to update forward-looking statements to reflect facts, circumstances, events or assumptions that occur after the date on which the forward-looking statements are made. Actual results could differ materially from those included in these forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Among the factors that could cause actual results to differ materially from the forward-looking statements are the following: fluctuations in the price of lumber; adverse or unusual weather conditions; adverse economic conditions in the markets we serve; government regulations, including environmental and safety regulations; and our ability to make successful business acquisitions. Some of these risk factors and other risk factors and additional information are included in the Company’s reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission.
CONTACT: ---------------AT THE COMPANY--------------- Dick Gauthier VP, Communications and Investor Relations (616) 365-1555