Deckorators, an affiliate of UFP Industries (UFPI), acquired Cedar Poly for $17 million. The purchase price includes incentive payments of up to $1.5 million over three years if Cedar Poly meets certain performance goals, according to a news release.
“Cedar Poly allows us to vertically integrate our sourcing of recycled polymers and increase our use of post-industrial waste materials in our industry-leading products without compromising quality,” Landon Tarvin, vice president of Deckorators, said in a news release. “Growing our Deckorators product line using more sustainable raw materials is a key objective and enhances the overall value to our customers and our shareholders.”
Tipton, Iowa-based Cedar Poly is a full-service recycler of high-density and low-density polyethylene flakes and pellets used in various products, including composite decking. The company also recycles corrugate and operates its own transportation fleet. Cedar Poly, which generated sales of approximately $17.3 million, will operate in UFP’s Deckorators business unit. According to UFP, the Cedar Poly management team, including vice presidents Scott and Jeremy Rogers, will remain in management roles.
UFP said industry research forecasts the decking market to double in size during the next five to seven years, with composite decking accounting for most of the projected growth. To meet this expected growth, UFP plans to invest in additional capabilities at Cedar Poly’s operations to serve both Deckorators and Cedar Poly’s existing customers.
“Joining the UFP family of companies will give us more resources to accelerate our growth,” Scott Rogers, vice president of Cedar Poly, said. “We’ll also have the ability to work hand-in-hand with the Deckorators team to innovate and improve the best composite decking in the industry. Our team is thrilled about this new chapter in our business and ready to capitalize on all the opportunities this creates for our customers and employees.”
UFP Industries is a holding company whose operating subsidiaries, UFP Industrial, UFP Construction, and UFP Retail Solutions, manufacture, distribute, and sell a wide variety of value-added products used in residential and commercial construction. Deckorators is a brand of UFP Retail Solutions.