UFP Industries to Acquire Assets of Cedar Poly LLC

SEATTLE (Scrap Monster): Grand Rapids, Michigan-based UFP Industries announced that it has added plastic recycling to its retail operations by way of acquisition of Tipton, Iowa-based Cedar Poly LLC. UFP’s affiliate Deckorators, Inc. acquired the full service recycler of HDPE and LDPE flakes and pellets for a sum of $17 million. The purchase price comprises incentive payments amounting to nearly $1.5 million over a period of three years, upon Cedar Poly meeting certain performance goals.

According to company press release, the management team of Cedar Poly, including vice presidents Scott and Jeremy Rogers, will be retained in their respective management roles. The acquired company will be part of UFP’s Deckorator business unit. It must be noted that Cedar Poly had reported sales of approximately $17.3 million during the previous year.

Commenting on the deal, Landon Tarvin, vice president of Deckorators said that the acquisition will help it to vertically integrate its sourcing of recycled polymers and increase its use of post-industrial waste materials in its industry-leading products. It will boost the growth of its Deckorators product line using more sustainable raw materials, thereby enhancing the overall value to customers and shareholders, Tarnvin added.

UFP Industries plans to invest in additional capabilities at Cedar Poly’s operations. Incidentally, the decking market size is projected to double in the nest 5-7 years.