UFP Global Acquires 80% Stake In Spain-Based Palets Suller Group For $52M

UFP Industries Inc UFPI said its subsidiary, UFP Global Holdings Ltd, has acquired 80% of the equity in a newly formed company, UFP Palets y Embalajes SL, for approximately $52 million.

UFP Palets comprises the former pallet manufacturing operations of Palets Suller SL, Serrería y Palets Chiva SL and Drevex Castellón SL, collectively known as Palets Suller Group. 

UFP Palets had trailing 12-month sales of approximately $38 million through August 2023.

Headquartered in Castellón, Spain, Palets Suller provides machine-built wood pallets, serving the region's ceramic tile industry as well as other industries. Founder and CEO Samuel Suller Oliver will retain a 20% stake in the company and continue as executive director.

UFP Industries held $702.9 million in cash and equivalents as of June 2023.

"Palets Suller provides a strong foundation to expand into Spain and grow our value-added packaging business in Europe," said UFP Global's executive vice president Dick McBride.

Price Action: UFPI shares closed lower by 0.71% at $101.66 on Wednesday.