Send me real-time posts from this site at my email

UFP Industries' (UFPI) Handprint to Acquire Walnut Hollow Farm

UFP Industries, Inc. UFPI announced that its growing home decor business, Handprint, which is the unit of UFP Retail Solution, has inked an agreement to buy the business assets of Walnut Hollow Farm, Inc. The buyout is expected to be sealed by the end of April 2021. However, the financial terms of the transaction have been kept under wraps.

Walnut Hollow Farm, based in Dodgeville, WI, is a manufacturer of diversified precisely finished wood surfaces used in hobby, craft and woodworking projects as well as in taxidermy. It also sells woodburning tools and accessories. In 2020, the company recorded roughly $11 million of net sales.

With respect to this, Handprint’s managing director, Jennifer Meyer, said, “Walnut Hollow provides us a new and unique mix of ready-to-make wood products and wood tools that customers love for their superior quality.”

Inorganic Strategies Drive Growth

UFP Industries has been focusing on buyouts to strengthen its product portfolio and leveraging business opportunities. Acquisitions have been the most preferred mode of solidifying its product portfolio and leveraging business opportunities. The company completed the acquisition of PalletOne and SunBelt in January 2021. The acquisition of PalletOne will give it a platform to add products and services, and will create a new customer base. This is the largest and the most recent acquisition made by the company.

UFP Industries’ capital-allocation strategy targets acquisitions to provide reasonable returns on investments. In Nov 2020, the company announced that the affiliates of UFP Construction LLC acquired the assets of Atlantic Prefab, Inc.; Exterior Designs, LLC; and Patriot Building Systems, LLC. The buyouts will likely boost its presence in the Northeast as these three companies serve the commercial and multi-family construction markets therein. UFP Industries’ balanced business model and diversified product portfolio are major positives in this challenging time.

UFP Industries shares have gained 25.3% in the past six months compared with the industry’s 25% rally. Also, earnings estimates for 2021 have moved up over the past 30 days, depicting analysts' optimism over the bottom-line growth potential. UFP Industries is benefiting from a solid U.S. residential market, and more demand for repair and remodeling activities. Also, buyout gains and shareholders' rewards will work in its favor.



Zacks Rank

UFP Industries — which shares space with Rayonier Inc. RYN, Louisiana-Pacific Corporation LPX and Weyerhaeuser Company WY in the Zacks Building Products - Wood industry — currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Weyerhaeuser Company (WY): Free Stock Analysis Report
LouisianaPacific Corporation (LPX): Free Stock Analysis Report
Rayonier Inc. (RYN): Free Stock Analysis Report
UFP Industries, Inc. (UFPI): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue