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UFP Industries, Grand Rapids, MI., announced that its subsidiary, Deckorators, Inc., has acquired Cedar Poly, LLC., a plastics recycler, for $17 million. The purchase price includes incentive payments of up to $1.5 million over three years if Cedar Poly meets certain performance goals.
Cedar Poly, Tipton, IA., is a full-service recycler of high- and low-density polyethylene (HDPE and LDPE) flakes and pellets used in various products, including composite decking. The company also operates its own transportation fleet. Cedar Poly had 2021 sales of approximately $17.3 million and will operate in UFP’s Deckorators business unit. The company’s management team, including vice presidents Scott and Jeremy Rogers, will continue in management roles.
“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,” said Landon Tarvin, VP of Deckorators. “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.”
UFP plans to invest in additional capabilities at Cedar Poly’s operations to serve both Deckorators’ and Cedar Poly’s existing customers.
“Joining the UFP family of companies will give us more resources to accelerate our growth,” said Scott Rogers, VP of Cedar Poly. “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.”