Universal Forest Products has agreed to acquire all of the operating assets of North American Container (NACC), a US-based manufacturer of structural packaging products, for an undisclosed amount.
NACC, which offers several proprietary packaging designs and holds a number of patents, operates nine manufacturing facilities in Georgia, South Carolina, Tennessee and Wisconsin.
The acquisition is a part of Universal Forest Products’ effort to enhance capacity and expand into geographic areas identified as opportunities for growth, including South Carolina and Tennessee.
Universal CEO Matthew Missad said: “This exciting opportunity will blend the best products of our two proven companies to create an industry-leading offering of structural packaging products.
“NACC’s proprietary agriculture boxes and crates, for example, will be of great interest to our existing customers, and our production methods will help us enhance manufacturing operations and output.
“We are impressed with the people, products, culture and leadership of NACC, and we are working toward a successful merger of our businesses and capabilities in a way that benefits customers, employees and shareholders.”
The deal is expected to allow Universal to offer additional solutions for packaging and crating needs for existing and targeted customers, as well as enhance manufacturing through automation.
It also allows the firm to offer customers the opportunity to purchase corrugated, steel and lumber packaging from a single supplier, among other benefits.
NACC CEO John Grigsby Jr said: “After more than 50 years of success, we were looking for the right opportunity to take our business to the next level for the benefit of our customers, employees and stakeholders. This merger with Universal Forest Products is that opportunity.”
The transaction is scheduled to be completed by 1 June 2018.