UFP Packaging Bolsters Gulf Coast Operations with Apache Products Acquisition

UFP Packaging Expands Its Gulf Coast Pallet Production Network

In a significant move to enhance its operational capabilities, UFP Packaging, a division of UFP Industries (Nasdaq: UFPI), has announced the acquisition of Apache Products, Inc., a Silsbee, Texas-based producer of pallets. This acquisition, which will integrate Apache into UFP's extensive pallet manufacturing network, marks a pivotal step towards consolidating UFP's market presence in the Gulf Coast region, particularly to cater to the booming petrochemical market.

Strengthening Market Position

The acquisition brings together a team of 165 professionals and all operational assets from Apache, a company known for its strong market position and established customer relationships within an essential industrial market. According to Scott Worthington, president of UFP Packaging, this expansion not only significantly increases UFP's capacity to supply high-quality stringer and heat-treated pallets but also enhances the company's ability to serve a vital sector where reliability and scalability are critical.

“Adding Apache expands our pallet manufacturing network into a strategic region, strengthens our ability to serve customers along the Gulf Coast with a broad range of packaging solutions and gives us additional capacity,” he stated.

The Future of Apache Products

Justin Elwell, executive vice president of PalletOne, emphasized the operational synergies that the acquisition will create. With Apache's local expertise being paired with UFP's national resources, they aim to enhance customer value while maintaining the high standards of service and relationship-building that have fueled Apache's past successes.

Brook Gilchriest, vice president of Apache Products, expressed confidence in the acquisition, stating that their core values focus on customer care and employee growth. He noted that finding a partner like UFP Packaging, which values those same principles, was crucial for ensuring the future of Apache’s operations and customer relationships.

About UFP Packaging

UFP Packaging stands as a leader in the North American industrial packaging solutions market, known as the largest producer of wooden pallets and crates in the U.S. The company's diverse expertise encompasses metal fabrication, corrugated conversion, and labeling, allowing UFP Packaging to offer a comprehensive suite of packaging services. Headquartered in Grand Rapids, Michigan, UFP Packaging continues to expand its operational reach and capacity to better serve its clients across various sectors, reinforced by their recent strategic acquisition.

Conclusion

With the integration of Apache Products into UFP Packaging's operations, clients along the Texas and Louisiana Gulf Coast can anticipate enhanced service capabilities, leading to a more reliable and scalable supply chain in the burgeoning petrochemical market. UFP Packaging is set to play an even more crucial role in the industrial sector, continuing its trajectory as a frontrunner in the packaging industry.