UFP Industries Expands Deckorators® Composite Decking Capacity Through Strategic Acquisition

Key Highlights

• Acquisition of Oldcastle APG’s MoistureShield Decking Assets: UFP Industries has acquired the operating assets related to MoistureShield decking from Oldcastle APG. This move significantly expands the company’s composite decking capacity.
• Enhanced Product Portfolio and Technology: The acquisition includes manufacturing assets, inventory, selected product brands, and the proprietary CoolDeck® composite decking technology, designed to reduce heat absorption versus standard composite decking.
• Capacity Doubled by 2027: With this transaction and planned capital investments, Deckorators’ overall wood-plastic composite (WPC) decking capacity is expected to double to \$200 million by 2027.
• Strategic Fit and Growth Acceleration: The purchase supports Deckorators’ long-term growth within the attractive outdoor living market and enables UFP to meet demand ahead of any greenfield expansion.
• Operational Synergies: The acquired operations will be integrated into Deckorators’ manufacturing network, optimizing production and enhancing resilience.
• Continued Focus on Core Business Investments: The acquisition supports UFP Industries’ broader strategy of investing in high-growth categories and strengthening its leading brands.

Details for Shareholders and Investors

This transaction is a major strategic development for UFP Industries (UFPI), likely to be of significant interest to shareholders:

• Share Price Implications: The acquisition positions UFPI for accelerated growth in the high-demand composite decking market, a move that could positively impact future revenue and share value.
• Immediate and Long-Term Capacity Expansion: The deal provides instant manufacturing capacity, supporting additional sales and meeting growing market demand, with the potential to double Deckorators’ WPC decking capacity to \$200 million by 2027.
• Competitive Advantage: By acquiring proven technology (CoolDeck®) and established assets, UFPI removes production constraints, optimizes network operations, and incorporates complementary technologies, further differentiating its product offerings.
• Growth Acceleration vs. Greenfield Expansion: Management highlights this as a more attractive investment versus building new capacity from scratch, enabling UFPI to achieve growth objectives faster and more efficiently.
• Retention of Other Brands by Seller: Oldcastle APG will retain its RDI® Railing and Catalyst™ Fence Solutions brands, ensuring UFPI’s focus remains on Deckorators’ composite decking.
• Support for Retail and Dealer Partners: The enhanced capacity will bolster support for national retail partners, dealers, and contractors, while maintaining a focus on innovation, quality, and service.

CEO and Leadership Commentary

“This acquisition is fundamentally about our commitment to strengthen our core business and adding capacity to execute our growth plans,” said Will Schwartz, CEO of UFP Industries. “By adding proven manufacturing assets and complementary technologies to the Deckorators business, we are removing constraints, expanding capacity and putting the brand in a stronger position to meet demand.”

Lando Garvin, President of UFP Retail Solutions, added, “The facility provides immediate capacity for additional sales with opportunities to add capacity in the future as sales growth objectives are achieved. We expect that with both this investment and additional capital investments at this location, we will have the ability to double Deckorators’ overall capacity of WPC to a total of \$200M by 2027.”

Outlook

The acquisition underscores UFP Industries’ focus on disciplined capital allocation, investing in high-growth categories, and strengthening the competitive position of its leading brands. With demand for composite decking projected to continue rising, the company is well-positioned for continued growth, improved market share, and potential margin enhancement.

Investor Relations Contact

Stanley Elliott, Director of Investor Relations
[email protected]

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making investment decisions. The information herein is based on the company’s official press release and may contain forward-looking statements subject to risks and uncertainties.

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