Established in 1996, Advantage Label is engaged in providing blank and customised labels, printers, label applicators and other packaging supplies
Advantage Label offers packaging supplies. (Credit: Jens P. Raak from Pixabay.)
UFP Packaging, a subsidiary of UFP Industries, has acquired Advantage Label & Packaging, a provider of industrial packaging labels and associated equipment, for around $16m.
The transaction consideration includes $2.9m for related real estate, along with incentive payments of up to $4.5m over five years, subject to achieving performance goals.
Established in 1996 in Grand Rapids, Michigan, Advantage Label is engaged in providing blank and customised labels, printers, label applicators and other packaging supplies.
The company serves beer and beverage, body armour, food production and processing, greenhouse and nursery, hobby and craft, manufacturing and automotive industries.
The company had trailing 12-month sales through November 2021 of around $19.8m.
Previous shareholders and management team of Advantage Label, including president Brad Knoth and sales manager TJ Long, will continue to lead the company upon closing of the deal.
UFP Packaging vice president Chuck Krawczak said: “Advantage Label’s full suite of labelling solutions, including equipment like Line Boss, a proprietary label application machine for agricultural containers, expands UFP’s ability to provide customers with a broad spectrum of industrial packaging products.
“Companies associated with packaging and tracking packages are growing quickly, and the addition of Advantage Label will allow us to participate in that growth.”
Established in 1955, UFP Industries is involved in manufacturing, distribution and marketing various value-added products used in construction, packaging and other industries.
The company has operating subsidiaries, UFP Industrial, UFP Construction and UFP Retail Solutions, and has affiliates in North America, Europe, Asia and Australia.
With the acquisition, UFP is enabled to expand its ability to provide a wide range of industrial packaging products to its customers.
Also, the transaction allows Advantage Label to make strategic investments that expand the company’s capacity and reach.
Brad Knoth added, “I am proud of the successful team at Advantage Label and am excited by the opportunities this transaction offers us.
“By joining the UFP family of companies, Advantage Label can make investments that will expand our capacity and reach. We look forward to contributing to UFP’s mission to become the leading global packaging solutions provider.”
Last month, UFP Global Holdings, a subsidiary of UFP Industries, has acquired a 70% stake in India-based industrial packaging company Ficus Pax for around $13.5m.