UFP Packaging acquires Apache Products to boost pallet capacity
Key takeaways
- UFP Packaging is acquiring Apache Products, a Texas-based pallet manufacturer with 165 employees, to expand its production capacity and Gulf Coast presence.
- The acquisition adds stringer and heat-treated pallet manufacturing capabilities and integrates Apache into UFP Packaging’s PalletOne network.
- The deal follows UFP Packaging’s recent investments in its US pallet manufacturing network.
UFP Packaging, a subsidiary of the Fortune 500 company UFP Industries, is set to expand its pallet production capacity through the acquisition of Apache Products, based in Silsbee, Texas, US.
“Apache has built a strong market position and established customer base in an important industrial market,” says Scott Worthington, president of UFP Packaging.
“Adding Apache expands our pallet manufacturing network into a strategic region, strengthens our ability to serve customers along the Gulf Coast [of the US] with a broad range of packaging solutions, and gives us additional capacity in a market where reliable supply and scalability are critical.”
UFP Packaging is a full-service packaging solutions provider in Grand Rapids, Michigan, with a network of over 100 locations worldwide. The company says it is currently the largest producer of wooden pallets and crates in the US.
The transfer includes Apache’s team of 165 employees and all operating assets.
Brook Gilchriest, VP of Apache, comments: “Apache has always been built around taking care of our customers and creating opportunities for our employees.”
“As we considered the future of the business, it was important to find a partner that shares those values. UFP Packaging brings the resources and national reach to support continued growth while preserving the culture and customer relationships that have been central to our success.”
Expanding production and reach
Through the acquisition, UFP Packaging gains access to Apache’s stringer and heat-treated pallet production capabilities, targeting the Gulf Coast petrochemical industry.
Additionally, Apache will join UFP Packaging’s PalletOne manufacturing network.
Justin Elwell, executive VP of PalletOne, states: “Apache brings an operation ripe for growth: an experienced team, disciplined execution, and strong customer relationships.”
“By pairing Apache’s local expertise with the resources of our national network, we can expand the value we deliver to customers while preserving the service and relationships that have made the company successful.”
Recently, UFP Packaging announced plans to establish a US$5.31 million custom crate manufacturing facility in South Carolina to serve clients with “highly technical packaging needs and sensitive products.”
Earlier this year, UFP Packaging sought to expand its coast-to-coast pallet manufacturing network in the US through the acquisition of the operating assets at three John Rock locations, a pallet manufacturer headquartered in Pennsylvania, and the acquisition of Berry Pallets, based in Minnesota.
In other related news, Amcor received a RecyClass certification for selected products in its Bontite Sustane stretch film for pallet wraps, and the EU lowered its reuse requirements for pallet straps and wrapping under its Packaging and Packaging Waste Regulation.
