UFPI to buy idX Corp., leading international provider of custom merchandising solutions
September 01 2016 - 9:00AM
Universal Forest Products, Inc. (NASDAQ:UFPI) today announced that
it has signed a definitive agreement to purchase idX Corp., an
international provider of highly customized merchandising
solutions. Under terms of the agreement, UFPI will acquire all
outstanding shares of stock of the holding company, idX Holdings,
Inc. The move opens new doors to Universal for growth in adjacent
markets and with new products, and offers idX access to enhanced
capacity and to new customers and markets. The transaction is
expected to close by the end of the third quarter.
Based in St. Louis, Mo., idX is a market leader in the
fragmented $6 billion merchandising solutions industry, with a
comprehensive offering of products and services. The company was
founded in 1999. Today, it has a network of more than 20
manufacturing, program management and sales facilities across North
America, Europe and Asia. It had 2015 sales of approximately $303
million.
“idX is a dynamic company that creates and installs highly
customized merchandising solutions for some of the world’s most
renowned brands,” said Universal CEO Matthew J. Missad. “It is led
by a team of professionals who are respected for their expertise,
integrity and moxie and who have been successfully growing their
business by continually adding new markets, products and services,
and by expanding their international footprint.”
“idX brings to Universal the opportunity to supply some of their
operations with products we currently manufacture, to grow adjacent
business and capabilities, and to serve new customers and markets.
idX’s growth strategies, including their focus on international
business and on new end-markets, align with our growth objectives,”
he added. “They are a great fit, culturally and strategically, and
we’re thrilled they are becoming a part of the Universal
family.”
Said idX President Terrence L. Schultz: “This presents a great
next step in the exciting history of idX. By joining the Universal
team, we have the opportunity to enhance our capacity, expand our
client base, take advantage of synergies and provide more
opportunities for our people to grow. Universal provides the
capital strength we need to continue to grow our portfolio of
products and services. It has the same customer-focused culture and
philosophy that idX has employed throughout its history, which was
critical to us as we considered this opportunity. And working with
Universal’s existing businesses, we can play a key role in
Universal’s growth and success. We are thrilled the leadership of
Universal recognized the strengths and opportunities idX brings to
the table, and we are excited to become a vital part of such a
respected organization.”
UFPI doesn’t expect the merger to contribute significantly to
profitability for the remainder of 2016, due to the seasonality of
idX’s business. The Company currently targets $25 million to $28
million in EBITDA with approximately $6 million in depreciation and
amortization for 2017.
UNIVERSAL FOREST PRODUCTS, INC. Universal
Forest Products, Inc. is a holding company that provides capital,
management and administrative resources to subsidiaries that supply
wood, wood composite and other products to three robust markets:
retail, construction and industrial. Founded in 1955, the
Company is headquartered in Grand Rapids, Mich., with affiliates
throughout North America. For more about Universal Forest Products,
go to www.ufpi.com.
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act, as
amended, that are based on management’s beliefs, assumptions,
current expectations, estimates and projections about the markets
we serve, the economy and the Company itself. Words like
“anticipates,” “believes,” “confident,” “estimates,” “expects,”
“forecasts,” “likely,” “plans,” “projects,” “should,” variations of
such words, and similar expressions identify such forward-looking
statements. These statements do not guarantee future performance
and involve certain risks, uncertainties and assumptions that are
difficult to predict with regard to timing, extent, likelihood and
degree of occurrence. The Company does not undertake to update
forward-looking statements to reflect facts, circumstances, events,
or assumptions that occur after the date the forward-looking
statements are made. Actual results could differ materially from
those included in such forward-looking statements. Investors are
cautioned that all forward-looking statements involve risks and
uncertainty. Among the factors that could cause actual results to
differ materially from forward-looking statements are the
following: fluctuations in the price of lumber; adverse or unusual
weather conditions; adverse economic conditions in the markets we
serve; government regulations, particularly involving environmental
and safety regulations; and our ability to make successful business
acquisitions. Certain of these risk factors as well as other risk
factors and additional information are included in the Company's
reports on Form 10-K and 10-Q on file with the Securities and
Exchange Commission.
Lynn Afendoulis
Director, Corporate Communications
(616) 365-1502
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