UFP Industries Strengthens Northeast Presence by Acquiring John Rock, Inc.

UFP Industries Expands Northeast Footprint Through Acquisition of John Rock, Inc.

In a strategic move to grow its regional influence, UFP Industries (NASDAQ: UFPI) has made headlines with its recent acquisition of John Rock, Inc., a prominent manufacturer of pallets. The acquisition, estimated at $48 million, allows UFP to significantly enhance the geographic reach of its subsidiary PalletOne, Inc. The deal focuses on three key operating locations, situated in Coatesville, PA, Mifflintown, PA, and Bowling Green, VA, adding an impressive value of approximately $82 million in annual sales and welcoming nearly 250 new employees into the UFP family.

John Rock, which operates under Kamps Pallets, is known for its expertise in designing and manufacturing new pallets primarily across Pennsylvania and Virginia. By acquiring these three locations, UFP Industries is addressing a crucial gap in the northeast market and enhancing its ability to serve a growing customer base in that region. The acquisition does not include John Rock's remaining sawmill located in Dilwyn, VA, which will continue to operate independently.

Will Schwartz, CEO of UFP Industries, emphasized the acquisition's importance in aligning with the company’s long-term vision. He stated, “This acquisition is fundamentally about strengthening our core packaging business and expanding our footprint in a region where we see long-term opportunity.” Schwartz acknowledged the established reputation of John Rock in pallet manufacturing, noting their robust customer relationships and experienced workforce.

As part of the integration process, the acquired locations will merge into PalletOne’s existing manufacturing network. This integration is expected to foster improved operational efficiency and service levels, allowing UFP to leverage its procurement capabilities while also nurturing the local expertise that has proven essential for John Rock's success.

Scott Worthington, President of UFP Packaging, expressed enthusiasm about the merger, declaring, “John Rock is a well-known name in the northeast pallet market, with a strong team and a diverse customer base. We are excited to welcome their employees to PalletOne and look forward to building on the foundation they have established.”

This acquisition not only strengthens UFP Industries' core packaging focus but also showcases the company’s commitment to expanding its manufacturing capacity in key markets. By enhancing its competitive position within both packaging and industrial sectors, UFP is setting itself up for future growth opportunities.

Through this strategic acquisition, UFP Industries is better equipped to serve national customers while simultaneously fulfilling local needs, establishing a powerful presence in the northeast pallet market. As the industry evolves, UFP's ability to adapt and grow underlines its determination to remain a leader in the packaging sector.