GRAND RAPIDS, Mich.– UFP Industries subsidiary PalletOne Inc. acquired a 50% stake in Dempsey Wood Products LLC.
Financial details were not disclosed, although the purchase agreement includes options for PalletOne to buy the remaining 50% of Dempsey after three years.
Founded in 1988, Dempsey Wood Products produces kiln-dried lumber, pallet lumber and other industrial wood products from its plant in Orangeburg, South Carolina. The company recorded revenue of $68.9 million in 2021.
PalletOne said its investment in Dempsey Wood Products will help 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 Wood’s management team, including founder Ronald Dempsey and his son, Parker Dempsey, will continue to serve in leadership roles.
“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 industrial offerings. This provides our company and our employees with exciting new growth opportunities.
Based in Bartow, Florida, PalletOne Inc. is said to be North America’s largest asset-based pallet manufacturer. PalletOne manufactures new pallets, offers pallet repair programs, recycles used pallets and produces a variety of other wood products. The company is a subsidiary of UFP Industrial, which operates more than 70 wood packaging and pallet manufacturing facilities across the United States.
UFP Industries (Nasdaq: UFPI) 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 industrial applications. worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Michigan, with subsidiaries in North America, Europe, Asia and Australia.