UFP Industries makes equity investment in Italy, expanding international industrial packaging presence

Rhea-AI Summary

UFP Industries (Nasdaq: UFPI) announced an equity investment in Enwrap Logistic & Packaging S.r.l., enhancing its presence in Europe. Enwrap, formed from Job Service S.p.A., generated approximately $14 million in sales in 2019, with its operations based in Milan, Italy. This partnership is expected to expand UFP's logistics and packaging capabilities across Europe and the Middle East. UFP executives expressed optimism about the collaboration, citing a strong cultural and strategic alignment with Enwrap, which could lead to significant growth opportunities in the global packaging market.

Positive

• Equity investment in Enwrap enhances UFP's European market presence.
• Enwrap generated approximately $14 million in sales in 2019.
• Strategic partnership expected to drive growth in logistics and packaging operations.

Negative

• None.

GRAND RAPIDS, Mich., Nov. 05, 2020 (GLOBE NEWSWIRE) -- UFP Industries (Nasdaq: UFPI) today announced that its affiliate, UFP Global Holdings, has completed an equity investment in Enwrap Logistic & Packaging S.r.l. (Enwrap). Enwrap is a newly formed company dedicated to the logistics and packaging business of its predecessor, Job Service S.p.A. Headquartered in Milan, Italy, Enwrap provides high-value, mixed material industrial packaging and logistics services through eight locations in Italy. These locations generated approximately $14 million in sales in 2019. Luigi Postiglione, president and managing director of Job Service, will lead the new joint venture.

“The Enwrap team is the type of partner we have been seeking to establish our presence in Europe,” said Dick McBride, UFP’s executive vice president of international operations. “Their strength in design, manufacturing and logistics will provide us with the platform we need to expand throughout the continent. In addition, their passion and work ethic are an important cultural match with UFP Industries. We look forward to our future growth together.”

“We are very excited to have such a strong and experienced partner in UFP Industries,” said Mr. Postiglione. “UFP has a clear motivation to grow its global packaging business, and we share the same passion. Enwrap combines UFP’s global resources with our custom product range and access to markets, offering new capabilities to customers throughout Europe and the Middle East.”

“UFP Global continues to serve UFP customers in other parts of the world, and this business helps us serve customers in Central and Southern Europe,” said UFP Industries CEO Matthew J. Missad. “We look forward to helping Mr. Postiglione grow Enwrap into an even better company.”

UFP Industries, Inc.

UFP Industries is a holding company whose subsidiaries supply wood, wood composite and other products to three markets: retail, construction and industrial. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates throughout North America, Europe, Asia and Australia. For more about UFP Industries, go to www.ufpi.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, that are based on management’s beliefs, assumptions, current expectations, estimates and projections about the markets we serve, the economy and the Company itself. Words like “anticipates,” “believes,” “confident,” “estimates,” “expects,” “forecasts,” “likely,” “plans,” “projects,” “should,” variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. The Company does not undertake to update forward-looking statements to reflect facts, circumstances, events, or assumptions that occur after the date the forward-looking statements are made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially from forward-looking statements are the following: fluctuations in the price of lumber; adverse or unusual weather conditions; adverse economic conditions in the markets we serve; government regulations, particularly involving environmental and safety regulations; and our ability to make successful business acquisitions. Certain of these risk factors as well as other risk factors and additional information are included in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.

---------------AT THE COMPANY---------------

Dick Gauthier
VP, Business Outreach
(616) 365-1555

FAQ

What is UFP Industries' recent investment in Enwrap about?

UFP Industries has made an equity investment in Enwrap Logistic & Packaging S.r.l., a new company formed to provide logistics and packaging services.

How much sales did Enwrap generate in 2019?

Enwrap generated approximately $14 million in sales in 2019.

What does the partnership between UFP Industries and Enwrap aim to achieve?

The partnership aims to expand UFP's logistics and packaging capabilities throughout Europe and the Middle East.

Who will lead the new venture Enwrap?

Luigi Postiglione, the president and managing director of Job Service, will lead the new joint venture Enwrap.