Sunbelt Forest Products Corporation, the wholly-owned subsidiary of UFP Industries, signed an agreement to purchase the net operating assets of Spartanburg Forest Products and its affiliates. The purchase price for Spartanburg’s property, plants, and equipment is approximately $17 million, according to a news release.
Terms of the deal call for Sunbelt to also purchase Spartanburg’s net working capital for an amount equal to the net book value determined on the date of closing the transaction. As of December 31, 2020, Spartanburg’s net working capital totaled approximately $80 million. The transaction is expected to close during the first quarter.
“Spartanburg Forest Products has a great reputation for quality and service,” Ken DelleDonne, president of Sunbelt Forest Products, said in a news release. “Our customers are asking us to do more and the addition of the Spartanburg team will help us better serve our customers’ needs. We look forward to working with them and creating more success stories together.”
Greer, S.C.-based Spartanburg and its affiliates operate four wood treating facilities and one manufacturing facility in five states. Spartanburg’s affiliates include Appalachian Forest Products, Innovative Design Industries, Blue Ridge Wood Preserving, Blue Ridge Wood Products, and Tidewater Wood Products. The combined companies had 2020 sales of approximately $543 million. UFP Industries said Stephen Michael, president and CEO of Spartanburg, will remain in a consultative role to help with the transition to Sunbelt. Sunbelt plans to continue all of Spartanburg’s current vendor and supplier relationships after the closing of the sale.
“The combination of Spartanburg and Sunbelt will generate operational efficiencies that will allow both companies to provide greater value to our customers, as well as expand our capacity and geographic reach,” Michael said.
Bartlow, Fla.-based Sunbelt produces pressure-treated lumber and residential fencing in the southeast. Grand Rapids, Mich.-based 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.
