UFPI affiliate purchases 50% interest in Upshur Forest Products
A subsidiary of Universal Forest Products has purchased a 50% ownership interest in Upshur Forest Products, which owns sawmill operations in Gilmer, Texas.
According to a statement released by UFPI Monday, the acquisition will help expand the company's footprint in East Texas and western Louisiana, supplying raw material to nearby UFPI affiliates and to new industrial operations that will be established at one of the mill locations.
"Among our strategic goals is to grow our industrial business, and we're doing that in a steady manner by adding to existing industrial operations and growing our presence in areas we haven't been able to serve economically," said Universal CEO Matthew J. Missad. "Our new strategic partnership with Upshur will allow us to add industrial manufacturing operations adjacent to the mill and serve customers in East Texas and western Louisiana at a substantial freight savings. In addition, we will lock in our supply of specialty mill items and certain hard-to-find dimensions and grades."
Sales for Upshur Forest Products in 2015 are projected to reach $10 million. The transaction closed on March 27, 2014.