This article was originally published on TipRanks.com.
Deckorators, a subsidiary of Michigan-based UFP Industries, Inc. (NASDAQ:UFPI), has acquired aluminum fencing, gates and railing manufacturer Ultra Aluminum Manufacturing Inc. for $25 million. The amount includes $2 million that will be paid on the achievement of certain milestones.
Following the completion of the acquisition, Russ Springborn, the President of Ultra, and the Vice-President of Business Development, Dave Stewart, will continue in leadership roles.
Howell-based Ultra designs and manufactures ornamental aluminum fence and railing products for contractors, landscapers, fence dealers and wholesalers. Its trailing 12-month sales through November 2021 total around $46 million.
The Vice-President of Deckorators, Landon Tarvin, said, “This transaction adds aluminum fencing to our current lineup of vinyl and wood fencing, and strengthens our commitment to bringing customers more choice and product innovation.”
About UFP Industries
UFP manufactures and sells wood and wood-alternative products, pressure-treated wood, engineered roof systems for site-built construction and manufactured housing, and a solid-sawn lumber buyer.
Its target markets include building materials, industrial, commercial construction and concrete forming, manufactured housing/RV and residential construction.
The company’s shares jumped 1.6% on Tuesday to close at $91.42.
Overall, the stock has a Moderate Buy consensus rating based on 2 Buys. The average UFP Industries price target of $100 implies 9.4% upside potential. Shares have gained nearly 63% over the past year.
TipRanks data shows that financial blogger opinions are 85% Bullish on UFPI, compared to the sector average of 70%.
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