Universal Acquires Banks and Looks to RV Market for Growth

Universal Forest Products Inc. (Universal) of Grand Rapids, Mich., recently announced that wholly owned subsidiaries of the company have agreed to acquire certain assets of the Banks Lumber division of Banks Corp. (Banks). Banks manufactures roof trusses and cut-to-size structural lumber for manufactured housing and recreational vehicle (RV) manufacturers nationwide and had sales of approximately $147 million in 2005. Universal manufactures and engineers wood and wood-alternative products for retail home centers, structural lumber products for the manufactured housing industry, engineered wood components for the site-built construction market and specialty wood packaging for various industries.

The company reported a purchase price of approximately $47 million including certain real estate, equipment and inventory, as well as intangible assets. The purchase was approved by Universal's board of directors November 15 and is expected to close on Friday, November 17, 2006.

Universal says this acquisition moves the company toward its goal of growing to $4 billion in sales by 2010 as part of its growth plan announced last month, and enhances its position in the truss market. It also says the acquisition opens the company's limited access to the RV market, where it sees long-term opportunities for growth. The company says it intends to dedicate one of its Indiana area facilities solely to the RV market in early 2007.