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GRAND RAPIDS, Mich. - UFP Industrial LLC has announced plans to acquire PalletOne Inc. for approximately $232 million. UFP also agreed to pay $18 million for PalletOne’s recent capital expenditures.
UFP Industrial is a subsidiary of UFP Industries. The transaction is subject to a net working capital adjustment and is expected to close on Dec. 28, pending customary closing conditions and regulatory approval. The purchase price will be funded using the company’s cash reserves, which currently total more than $400 million.
Based in Bartow, Florida, PalletOne is a leading U.S. manufacturer of new pallets, with 17 manufacturing facilities in the southern and eastern regions of the country. The company also supplies other specialized industrial packaging, including custom bins and crates, and its Sunbelt Forest Products subsidiary operates five pressure-treating facilities in the Southeastern United States. PalletOne and its affiliates had 2019 sales and adjusted EBITDA of