UFPI announces structure change to promote growth, effective Jan. 1, 2020
August 12 2019 - 7:30AM
Universal Forest Products, Inc. (Nasdaq: UFPI) today announced a
new organizational structure that is designed to position the
Company for accelerated sales and profit growth in the coming years
and provide more opportunity for its employees.
As of Jan. 1, 2020, the Company will be known as
UFP Industries, Inc. The Company will seek to ratify the name
change at its April 22, 2020, shareholder meeting. Under the new
structure, also effective Jan. 1, 2020, the Company will be
organized around the markets it serves rather than geography. Among
other benefits, this will allow for a more specialized and
consistent sales approach among all Universal companies, more
efficient use of resources and capital, and quicker introduction of
new products and services. UFP Industries will continue to trade
under the ticker symbol UFPI.
“We have the best team in the industry, and we
want to position our people for the greatest success,” said CEO
Matthew J. Missad. “The markets are changing quickly, and we need
to not only adapt to changes, but to anticipate future changes. As
the complexity in our product offering increases, our teams need to
be able to focus on products and services that bring more value to
our customers. The only way to lead the next era of growth is from
the front.”
Missad said that while the name Universal Forest
Products is a source of pride for employees, it no longer
accurately describes what the company does. "UFP Industries, Inc.
is a better fit for what we do and for our new organizational
structure," he said. “Our companies serve a diverse group of
customers, and our products include many materials, not just
wood.”
The company will be organized so that each
business segment aligns with the market it currently serves: UFP
Retail, UFP Construction and UFP Industrial. These segments will
each consist of multiple business units (profit centers) led by
entrepreneurial members of the UFP team. Each profit center will
have a general manager who will continue to operate his or her
facility to enhance customer service, create manufacturing and
transportation synergies and improve overall profitability.
Each of these three segments currently exceeds
$1 billion in annual revenue. The leaders of these segments will be
tasked with doubling sales and profits of their segment over the
next 10 years. Those leaders include:
- Allen Peters, who will become the president and COO of UFP
Retail,
- Patrick Benton, who will become president of UFP Construction,
and
- Scott Worthington, who will become president of UFP
Industrial.
During a transition period, Pat Webster will
maintain his duties as COO of UFPI and will take on COO
responsibility for UFP Construction and UFP Industrial. Jonathan
West will become executive vice president of Factory Built Housing
in the construction segment. Chad Eastin will become executive vice
president of ProWood.
“Our focus is on being the expert solution
providers for our customers. This new organization enables us to
accomplish that much more efficiently," Missad said. “We believe
this is a wonderful opportunity for the companies and people of
Universal, and we are excited about the future of UFP Industries.
Our teams are up to the challenge, and we know they will continue
to excel and to grow their opportunities and the company in new and
exciting ways.”
UNIVERSAL FOREST PRODUCTS,
INC.Universal Forest Products, Inc. is a holding company
whose subsidiaries supply wood, wood composite and other products
to three robust 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 Universal Forest Products, 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---------------Brandon FroyslandDirector, Finance(616)
365-1589
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