UFP Industries Expands in Alabama by Acquiring C&L Wood Products

Company Overview - UFP Packaging, LLC, an affiliate of UFP Industries, Inc. (UFPI), has completed the acquisition of C&L Wood Products, Inc., a manufacturer of pallets and mulch based in Hartselle, AL, which will enhance UFP Packaging's PalletOne business and expand its market reach in Alabama [1] - C&L Wood Products reported trailing 12-month sales of 24.8 million as of November 2024, indicating a significant addition to UFP's revenue stream [1] Strategic Initiatives - The acquisition of C&L Wood Products is expected to expand PalletOne's geographic footprint and provide access to high-volume pallet production in northern Alabama, as stated by Justin Elwell, the executive vice president of PalletOne [2] - UFP Industries employs both organic and inorganic strategies to enhance its product offerings and business growth, with a focus on accretive acquisitions to solidify its product portfolio [3] Financial Performance and Goals - UFP Industries aims for annual unit sales growth of 7-10% over the next five years, with small tuck-in acquisitions contributing to this goal [3] - In the first nine months of 2024, new product sales accounted for 7.5% of total sales, amounting to 388.4 million, with a target of achieving $510 million in new product sales for the year [4] - The long-term goal for new product sales as a percentage of total sales is set at 10% [4] Market Position - UFP Industries currently holds a Zacks Rank of 4 (Sell), indicating a less favorable market position compared to other companies in the construction sector [5] - Competitors such as Sterling Infrastructure, Inc. and Weyerhaeuser Company have better Zacks Ranks of 1 (Strong Buy), with notable stock performance and growth estimates for 2025 [5][7]