Grand Rapids, Mich.-based UFP Industries Inc. has purchased an Iowa recycling firm to support its composite decking business, Deckorators Inc.
The acquisition of Cedar Poly LLC of Tipton, Iowa, for $17 million will provide a source of recycled plastics for Deckorators, the company said.
Deckorators, with $249 million in sales in 2021, offers products made of wood and plastic coextruded with a durable polyethylene top layer, as well as mineral-based composite decking (MBC), which comprises a mix of polypropylene and calcium carbonate instead of wood fiber.
The acquisition of family-owned Cedar Poly lets Deckorators source recycled plastics internally for its products, particularly polyethylene.
Founded in 2007, Cedar Poly buys nearly all forms of post-consumer and post-industrial plastic. The company sorts, grinds, washes, dries and repelletizes, or bales, the material for sale to U.S. manufacturers.
Cedar Poly posted sales of about $17.3 million in 2021, according to a news release about the acquisition.
"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," Deckorators Vice President Landon Tarvin said in the 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."
Cedar Poly recycles high and low density PE into flake and pellets for composite decking and other products.
The company also buys polypropylene, PET, polycarbonate, ABS, nylon, paper and metals for reprocessing and resale.
Cedar Poly processes more than 70 million pounds of material annually, using a large transport fleet to bring recyclables from industrial, commercial and office sites as well as city and county recovery facilities.
The acquired company's management team, including vice presidents Scott and Jeremy Rogers, will continue in management roles.
"Joining the UFP family of companies will give us more resources to accelerate our growth," Scott Rogers 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."
The release says industry research indicates the decking market will double in size during the next five to seven years, with composite decking accounting for most of that growth.
UFP plans to invest in additional capabilities at Cedar Poly's operations to serve both Deckorators and Cedar Poly's existing customers.
UFP Industries is a holding company with $8.6 billion in 2021 sales. Its operating subsidiaries, including UFP Industrial, UFP Construction and UFP Retail Solutions LLC, have 216 facilities.
Deckorators Inc. is part of the UFP Retail Solutions business unit, which offers lumber; outdoor living products, including wood and wood composite decking; and related accessories, such as decorative lawn, garden, craft and hobby products.
Deckorators generated $249 million in 2021 sales, up from $220 million in 2020 and $185.2 million in 2019, according to UFP's annual report.