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BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS | 12 Months Ended
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Dec. 30, 2023
BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS |
BUSINESS COMBINATIONS | C.BUSINESS COMBINATIONS We completed the following business combinations in fiscal 2023 and 2022, which were accounted for using the purchase or equity method (in thousands).
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Net | ​
Company | Acquisition | ​ | Intangible | Tangible | Operating
Name | Date | Purchase Price | Assets | Assets | Segment
​ | September 20, 2023 | $52,841 consideration for 80% stock purchase, net of acquired cash | $ | 43,785 | $ | 9,056 | International
UFP Palets y Embalajes SL (UFP Palets) | Headquartered in Castellón, Spain, UFP Palets (formerly known as Palets Suller Group) is the market leader in machine-built wood pallets, serving the region's large ceramic tile industry. The company had trailing 12-month sales of approximately $38 million through August 2023.
​ | December 6, 2022 | $70,942 consideration for 100% asset purchase | $ | 48,745 | $ | 22,197 | Packaging
Titan Corrugated, Inc. (Titan) and All Boxed Up, LLC (ABU) | Located in Flower Mound, TX and founded in 2003, Titan’s primary products include boxes used in moving and storage, jumbo boxes for industrial products, corrugated shipping containers, and point-of-purchase displays. ABU distributes common box sizes manufactured by Titan throughout the United States. The combined companies had trailing 12-month sales through October 2022 of approximately $46.5 million.
​ | June 27, 2022 | $69,791 consideration for equity method investment | $ | 34,552 | $ | 35,239 | Packaging
Dempsey Wood Products, Inc. (Dempsey) | Located in Orangeburg, South Carolina and founded in 1988, Dempsey is a sawmill which produces products such as kiln dried finished lumber, industrial lumber, green cut stock lumber, pine chips and shavings, landscaping mulch, and sawdust. The Company had sales of approximately $69 million in 2021.
​ | May 9, 2022 | $15,398 consideration for 100% asset purchase | $ | 4,821 | $ | 10,577 | Retail
Cedar Poly, LLC | Located in Tipton, Iowa, Cedar Poly is a full-service recycler of high-density and low-density polyethylene (HDPE and LDPE) flakes and pellets used in various products, including composite decking. The company also recycles corrugate and operates its own transportation fleet. Cedar Poly had 2021 sales of approximately $17.3 million and operates in UFP’s Deckorators business unit.
​ | December 27, 2021 | $24,057 consideration for 100% stock purchase, net of acquired cash and $2,000 estimated contingent consideration | $ | 20,390 | $ | 5,667 | Retail
Ultra Aluminum Manufacturing, Inc. (Ultra) | Located in Howell, Michigan and founded in 1996, Ultra is a leading manufacturer of aluminum fencing, gates and railing. The company designs and produces an extensive selection of ornamental aluminum fence and railing products for contractors, landscapers, fence dealers and wholesalers. The Company had sales of approximately $45 million in 2021.
​ The intangible assets for each acquisition were finalized and allocated to their respective identifiable intangible asset and goodwill accounts during 2023, except for the acquisition of UFP Palets. In aggregate, acquisitions made during 2023 and 2022, contributed approximately $95.0 million in net sales and $3.3 million in operating profit during 2023. We acquired UFP Palets on September 20, 2023, in which we own 80% of the issued equity of that entity, and the remaining 20% of the issued equity is owned by the previous owner (“Seller”). In the fourth quarter of 2023, we gained control over UFP Palets and thus began consolidating this entity. The investment in UFP Palets is accounted for as a business acquisition. Per the contract, the Seller has a put right to sell their equity interest to us and we have a call right to purchase the Seller’s equity interest, which are both first exercisable in September 2026. The values of the put and call options are based upon future performance. As a result of this redemption feature, we recorded redeemable noncontrolling interest, at its acquisition‑date fair value, that is classified as temporary equity in the accompanying consolidated balance sheets at December 30, 2023. The amounts assigned to major intangible classes for the business combinations mentioned above are as follows (in thousands):
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​ |  | Non- |  | ​ |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | Intangibles -
​ | ​ | Compete | ​ | ​ | ​ | ​ | ​ | Customer | ​ | ​ | ​ | ​ | ​ | ​ | Tax
​ | ​ | Agreements | ​ | Technology | ​ | Patents | ​ | Relationships | ​ | Tradename | ​ | Goodwill | ​ | Deductible
UFP Palets | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 36,708 | * | $ | — | ​ | $ | 7,077 | * | $ | 43,785
All Boxed Up | ​ | ​ | — | ​ | ​ | 393 | ​ | ​ | — | ​ | ​ | 864 | ​ | ​ | 29 | ​ | ​ | 628 | ​ | ​ | 1,914
Titan | ​ | ​ | — | ​ | ​ | 9,607 | ​ | ​ | — | ​ | ​ | 21,136 | ​ | ​ | 721 | ​ | ​ | 15,367 | ​ | ​ | 46,831
Cedar Poly | ​ | ​ | 390 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,490 | ​ | ​ | 500 | ​ | ​ | 1,441 | ​ | ​ | 4,821
Ultra | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 6,820 | ​ | ​ | 5,020 | ​ | ​ | 8,550 | ​ | ​ | 20,390
​ *(estimate) ​ The business combinations mentioned above were not significant to our operating results individually or in aggregate, and thus pro forma results for 2023 and 2022 are not presented.

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