UFP Acquires Apache Products Assets in Texas for $27 Million
Key Facts
UFP Industries announced on October 26, 2026, that it had purchased the operating assets, including real estate, of Apache Products, which does business as Acme Skid, for about $27 million. In a statement published by PR Newswire, the company said the deal includes the assets of the pallet manufacturer based in Silsbee, Texas. The transaction expands the pallet manufacturing network of UFP Packaging, the statement said. The company added that the deal strengthens its ability to serve customers in the Gulf Coast region. It also adds about $55 million to UFP’s annual sales, according to the statement.
The deal comes as UFP recorded net sales of $1.88 billion in the second quarter of 2026, up 3% from $1.84 billion in the same period a year earlier. But sales growth was not accompanied by higher quarterly earnings, as diluted earnings per share fell to $1.48 from $1.70 a year earlier. Adjusted EBITDA was $154.5 million, compared with $174.1 million in the second quarter of 2025. The company attributed a major impact on earnings to higher freight costs, while weakness in the residential construction market was partly offset by improvement in other business units. Chief Executive Will Schwartz said the company sees "stability across the majority of our portfolio" and that second-quarter results reflect the progress it has made.
UFP detailed the impact of freight in its filing, saying freight costs as a percentage of net sales rose 1.6 percentage points compared with year-earlier levels. It estimated the increase at about $27 million after fuel surcharges and pricing adjustments. The company attributed the higher cost to rising transportation rates and fuel costs. In response to the pressures, Schwartz said UFP is targeting at least $25 million in savings from its initial $60 million cost-reduction program by the end of 2026. The program puts expense reduction among the priorities the company announced as it continues to invest in targeted acquisitions, according to its filing.
The Apache deal is not UFP’s only expansion in pallet operations in 2026; in May, the company announced it had purchased the operating assets of three John Rock locations for about $48 million. The company said at the time that the locations would add about $82 million to annual sales. In April, it announced the purchase of Berry Pallets’ assets, including real estate, for about $20 million, adding about $23 million in annual sales. These successive transactions show expansion through the acquisition of pallet manufacturing assets, with each deal differing in value and the sales it adds. UFP had about $1.9 billion in liquidity at the end of the second quarter and said it uses prudent capital allocation to invest in targeted acquisitions and return liquidity to shareholders through dividends and share repurchases.
UFP Industries shares, listed under the ticker UFPI, closed at $83.72 on October 22, then fell to $81.23 on October 23, according to EL7 data. These prices do not include the trading session on October 26, the day the deal was announced. The company is scheduled to report third-quarter results after the market closes on October 28, 2026. It said a call to discuss the results will be held on October 29. The statement expected the Apache deal to close on November 16, 2026, or around that date.