<SEC-DOCUMENT>0001171843-18-000841.txt : 20180202
<SEC-HEADER>0001171843-18-000841.hdr.sgml : 20180202
<ACCEPTANCE-DATETIME>20180202090646
ACCESSION NUMBER:		0001171843-18-000841
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180130
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180202
DATE AS OF CHANGE:		20180202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UFP TECHNOLOGIES INC
		CENTRAL INDEX KEY:			0000914156
		STANDARD INDUSTRIAL CLASSIFICATION:	PLASTICS FOAM PRODUCTS [3086]
		IRS NUMBER:				042314970
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12648
		FILM NUMBER:		18568876

	BUSINESS ADDRESS:	
		STREET 1:		100 HALE STREET
		CITY:			NEWBURYPORT
		STATE:			MA
		ZIP:			01950
		BUSINESS PHONE:		978-352-2200

	MAIL ADDRESS:	
		STREET 1:		100 HALE STREET
		CITY:			NEWBURYPORT
		STATE:			MA
		ZIP:			01950
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k_020218.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<html><head><title></title></head><body><div style="margin-top: 3pt; margin-bottom: 12pt;"><div style="font-size: 1pt; border-top: Black 2.5pt solid; border-bottom: Black 1.1pt solid; width: 100%;"><font style="font-size: 10pt;">&#160;</font></div></div><p style="text-align: center;"><font style="font-size: 14pt;"><strong>UNITED STATES</strong><br /><strong>SECURITIES AND EXCHANGE COMMISSION</strong><br /><strong>Washington, D.C. 20549</strong><br />_____________________</font></p><p style="text-transform: uppercase; text-align: center;"><font style="font-size: 14pt;"><strong>Form 8-K</strong><br />_____________________</font></p><p style="text-align: center;"><font style="font-size: 10pt;">Current Report Pursuant to<br />Section 13 or 15(d) of the<br />Securities Exchange Act of 1934 </font></p><p align="center"><font style="font-size: 10pt;">Date of Report (Date of earliest event Reported): <!--February 2, 2018-->January 30, 2018 &#160;</font></p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="bottom"><td style="border-bottom: Black 1pt solid;" align="center" width="50%"><font style="font-size: 12pt;"><strong>UFP Technologies, Inc.</strong></font></td></tr><tr valign="top"><td align="center" width="50%"><font style="font-size: 10pt;">(Exact Name of Registrant as Specified in Charter)</font></td></tr><tr style="vertical-align: top;"><td style="text-align: center;">&#160;</td></tr><tr valign="bottom"><td style="border-bottom: Black 1pt solid;" align="center" width="50%"><font style="font-size: 12pt;"><strong>Delaware</strong></font></td></tr><tr valign="top"><td align="center" width="50%"><font style="font-size: 10pt;">(State or Other Jurisdiction of Incorporation)<br /><br /></font></td></tr></table><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td style="text-align: center; width: 40%; border-bottom: Black 1pt solid;"><font style="font-size: 10pt;"><strong>001-12648</strong></font></td><td style="text-align: center; width: 20%;">&#160;</td><td style="text-align: center; width: 40%; border-bottom: Black 1pt solid;"><font style="font-size: 10pt;"><strong>04-2314970</strong></font></td></tr><tr valign="top"><td style="text-align: center;"><font style="font-size: 10pt;">(Commission File Number)</font></td><td style="text-align: center;">&#160;</td><td style="text-align: center;"><font style="font-size: 10pt;">(I.R.S. Employer Identification Number)</font></td></tr><tr style="vertical-align: top;"><td style="text-align: center;">&#160;</td><td style="text-align: center;">&#160;</td><td style="text-align: center;">&#160;</td></tr><tr style="vertical-align: top;"><td style="text-align: center; border-bottom: Black 1pt solid;"><font style="font-size: 10pt;"><strong>100 Hale Street, Newburyport, MA - USA </strong></font></td><td style="text-align: center;">&#160;</td><td style="text-align: center; border-bottom: Black 1pt solid;"><font style="font-size: 10pt;"><strong>01950-3504</strong></font></td></tr><tr style="vertical-align: top;"><td style="text-align: center;"><font style="font-size: 10pt;">(Address of Principal Executive Offices) </font></td><td style="text-align: center;">&#160;</td><td style="text-align: center;"><font style="font-size: 10pt;">(Zip Code)</font></td></tr></table><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="bottom"><td style="border-bottom: Black 1pt solid;" align="center" width="50%"><font style="font-size: 10pt;"><strong><br />978-352-2200</strong></font></td></tr><tr valign="top"><td align="center" width="50%"><font style="font-size: 10pt;">(Registrant's telephone number, including area code)</font></td></tr><tr style="vertical-align: top;"><td style="text-align: center;">&#160;</td></tr><tr valign="bottom"><td style="border-bottom: Black 1pt solid;" align="center" width="50%"><font style="font-size: 10pt;"><strong>N/A</strong></font></td></tr><tr valign="top"><td align="center" width="50%"><font style="font-size: 10pt;">(Former name or former address, if changed since last report)<br /><br /></font></td></tr></table><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td colspan="3"><font style="font-size: 10pt;">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:<br /><br /></font></td></tr><tr valign="top"><td width="21"><font style="font-size: 10pt;">&#160;</font></td><td width="40"><font style="font-size: 10pt;">[ &#160; ]</font></td><td nowrap="nowrap"><font style="font-size: 10pt;">&#160;&#160;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></td></tr><tr valign="top"><td width="21"><font style="font-size: 10pt;">&#160;</font></td><td width="40"><font style="font-size: 10pt;">[ &#160; ]</font></td><td nowrap="nowrap"><font style="font-size: 10pt;">&#160;&#160;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></td></tr><tr valign="top"><td width="21"><font style="font-size: 10pt;">&#160;</font></td><td width="40"><font style="font-size: 10pt;">[ &#160; ]</font></td><td nowrap="nowrap"><font style="font-size: 10pt;">&#160;&#160;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></td></tr><tr valign="top"><td width="21"><font style="font-size: 10pt;">&#160;</font></td><td width="40"><font style="font-size: 10pt;">[ &#160; ]</font></td><td nowrap="nowrap"><font style="font-size: 10pt;">&#160;&#160;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></td></tr></table><p><font style="font-family: 'times new roman', roman, serif; font-size: 10pt;"><br />Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR &sect;230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR &sect;240.12b-2). Emerging growth company [ &#160; ]</font></p><p><font style="font-family: 'times new roman', roman, serif; font-size: 10pt;">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ &#160; ]</font></p><div style="margin-top: 12pt; margin-bottom: 3pt;"><div style="font-size: 1pt; border-top: Black 1.1pt solid; border-bottom: Black 2.5pt solid; width: 100%;"><font style="font-size: 10pt;">&#160;</font></div>&#160;</div><hr style="page-break-after: always;" noshade="noshade" /><p><font style="font-size: 10pt;">  <strong>  </strong></font></p><p><font style="font-size: 10pt;"><strong>Item 1.01. Entry into a Material Definitive Agreement.</strong></font></p><p><font style="font-size: 10pt;">
 <p style="margin-left:0in; margin-right:0in;"><font style=" color: black; font-size:10pt;">UFP Technologies, Inc. (&#8220;UFP&#8221; or the &#8220;Company&#8221;) entered into the following agreements in connection with the completion of its acquisition of </font><font style="font-size:10pt;">Dielectrics, Inc., a Massachusetts corporation (&#8220;Dielectrics&#8221;):</font></p>  <p style="margin-left:0in; margin-right:0in;"><strong><font style="font-size:10pt;">Stock Purchase Agreement</font></strong></p>  <p style="margin-left:0in; margin-right:0in;"><font style="font-size:10pt;">On February 1, 2018, pursuant to the terms of a Stock Purchase Agreement, dated as of January 30, 2018 (the &#8220;Purchase Agreement&#8221;), by and among Eric C. Stahl, Gertrude E. Epstein, Marcia L. Rosen, Eric C. Stahl Children&#8217;s Trust, Gertrude S. Epstein Children&#8217;s Trust, Marcia L. Rosen Children&#8217;s Trust, Stahl Children&#8217;s Trust, u/d/t December 31, 1993 f/b/o Eric S. Stahl, Stahl Children&#8217;s Trust u/d/t December 31, 1993 f/b/o Gertrude Epstein, Stahl Children&#8217;s Trust u/d/t December 31, 1993 f/b/o Marcia L. Rosen (collectively, along with the named beneficiaries of each trust, the &#8220;Sellers&#8221;), Dielectrics and the Company, the Company purchased from the Sellers all of the issued and outstanding shares of common stock of Dielectrics for an aggregate purchase price of $60 million in cash.&#160; The purchase price is subject to adjustment based upon Dielectrics&#8217; working capital at closing.&#160; A portion of the purchase price is being held in escrow to indemnify the Company against certain claims, losses and liabilities, as well as to provide for liquidated damages in the event that the Sellers&#8217; representative fails to deliver to the Company certain audited financial statements of Dielectrics for pre-closing periods.&#160; The Purchase Agreement contains customary representations, warranties and covenants customary for transactions of this type. </font></p>  <p style="margin-left:0in; margin-right:0in;"><strong><font style="font-size:10pt;">Goodwill Agreement</font></strong></p>  <p style="margin-left:0in; margin-right:0in;"><font style="font-size:10pt;">On January 30, 2018, in connection with its entry into the Purchase Agreement, the Company also entered into an Agreement for the Purchase and Sale of Personal Goodwill (the &#8220;Goodwill Agreement&#8221;) with Eric C. Stahl (&#8220;Stahl&#8221;), the chairman and chief executive officer of Dielectrics, in his individual capacity.&#160; Pursuant to the terms of the Goodwill Agreement, on February 1, 2018, the Company purchased from Stahl his personal goodwill, including business relationships, trade secrets and knowledge in connection with Dielectrics&#8217; business, for a purchase price of $20 million in cash.&#160; Pursuant to the terms of the Goodwill Agreement, Stahl agreed to certain non-competition and non-solicitation restrictions for a period of five years, and Stahl agreed to provide certain consulting services to the Company, to assist with the transfer of his personal goodwill, for a period of one year. </font></p>  <p style="margin-left:0in; margin-right:0in;"><strong><font style="font-size:10pt;">Amended and Restated Credit Agreement</font></strong></p>  <p style="margin-left:0in; margin-right:0in;"><font style=" color: black; font-size:10pt;">On February 1, 2018, the Company, as the borrower, entered into an unsecured $70 million Amended and Restated Credit Agreement (the &#8220;Amended and Restated Credit Agreement&#8221;) with certain of the Company&#8217;s subsidiaries (the &#8220;Subsidiary Guarantors&#8221;) and Bank of America, N.A., in its capacity as the initial lender, Administrative Agent, Swingline Lender and L/C Issuer, and certain other lenders from time to time party thereto. The Amended and Restated Credit Agreement amends and restates the Company&#8217;s prior credit agreement, originally dated as of December 2, 2013. </font></p>  <p style="margin-left:0in; margin-right:0in;"><font style=" color: black; font-size:10pt;">The credit facilities under the Amended and Restated Credit Agreement consist of a $20 million unsecured term loan to UFP and an unsecured revolving credit facility, under which the Company may borrow up to $50 million.&#160; The Amended and Restated Credit Facilities mature on February 1, 2023.&#160; The proceeds of the Amended and Restated Credit Agreement may be used for general corporate purposes, including funding the acquisition of </font><font style="font-size:10pt;">Dielectrics, as well as certain other permitted acquisitions. &#160;Included in the Amended and Restated Credit Facilities is approximately $0.6 million in standby letters of credit drawable as a financial guarantee on worker&#8217;s compensation insurance policies.&#160; </font></p>  <p style="margin-left:0in; margin-right:0in;"><font style=" color: black; font-size:10pt;">The Company&#8217;s obligations under the Amended and Restated Credit Agreement are guaranteed by the Subsidiary Guarantors.</font></p>  <p style="margin-left:0in; margin-right:0in;"><font style=" color: black; font-size:10pt;">The Amended and Restated Credit Facilities call for interest of LIBOR plus a margin that ranges from 1.0% to 1.5% or, at the discretion of the Company, the bank&#8217;s prime rate less a margin that ranges from .25% to zero. In both cases the applicable margin is dependent upon Company performance.&#160; Under the Amended and Restated Credit Agreement, the Company is subject to a minimum fixed-charge coverage financial covenant as well as a maximum total funded debt to EBITDA financial covenant.&#160; The Amended and Restated Credit Agreement contains other covenants customary for transactions of this type, including restrictions on certain payments, permitted indebtedness and permitted investments.&#160; As of the date of this report, the Company had approximately $56 million in borrowings outstanding under the Amended and Restated Credit Facilities, which were used as partial consideration for the Dielectrics acquisition.</font></p> </font></p><p><font style="font-size: 10pt;"><strong>  </strong></font></p><p><font style="font-size: 10pt;"><strong>Item 2.01. Completion of Acquisition or Disposition of Assets.</strong></font></p><p><font style="font-size: 10pt;"><p style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif;"><font style="font-size: 10.0pt;">The information regarding the Purchase Agreement and the Goodwill Agreement, as set forth in Item 1.01 of this Form&#160;8-K, is hereby incorporated by reference into this Item 1.02.</font></p></font></p><p><font style="font-size: 10pt;"><strong>Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.</strong></font></p><p><font style="font-size: 10pt;">
 <p style="margin-left:0in; margin-right:0in;"><font style=" color: black; font-size:10pt;">The information regarding the Amended and Restated Credit Agreement, as set forth in Item 1.01 of this Form&#160;8-K, is hereby incorporated by reference into this Item 2.03.</font></p> </font></p><p><font style="font-size: 10pt;"><strong>  </strong></font></p><p><font style="font-size: 10pt;"><strong>Item 7.01. Regulation FD Disclosure.</strong></font></p><p><font style="font-size: 10pt;">
 <p style="margin-left:0in; margin-right:0in;"><font style="font-size:10pt;">Dielectrics designs, engineers, researches, develops, manufactures, sells and distributes various products using&#160; welding, thermal forming and adhesive bonding in various markets including the medical, industrial, sports and leisure markets.&#160; Excluding transaction costs, the Company paid an estimated amount of $77.2 million in the aggregate in connection with the acquisition of Dielectrics (which includes payments of $60 million and $20 million in connection with the Purchase Agreement and the Goodwill Agreement, respectively, net of an estimated $2.8 million in cash assumed by the Company in its purchase of Dielectrics). The aggregate estimated purchase price is approximately 8 1/2 times Dielectrics&#8217; 2017 preliminary adjusted net income before interest, taxes, depreciation and amortization (adjusted EBITDA) for the 12 month period ended December 31, 2017. The Company defines Dielectrics&#8217; preliminary adjusted EBITDA, which is a non-GAAP financial measure, as adjusted net income plus net interest expense, income taxes, and depreciation and amortization expense.&#160; The Company defines Dielectrics&#8217; adjusted net-income as net income, plus owners&#8217; excess compensation.</font></p>  <p style="margin-left:0in; margin-right:0in;"><font style="font-size:10pt;">The multiple described above for the 12 month period ending December 31, 2017 is based upon amounts provided by Dielectrics to the Company and is an estimate only and represents the most current information made available to the Company by Dielectrics as of the date of this report. Therefore, it is possible that Dielectrics&#8217; actual preliminary adjusted EBITDA for such period may differ materially from this estimate as the Sellers&#8217; representative makes final adjustments and considers other developments which may arise between now and the time the Company and Dielectrics finalize financial results for such period. In addition, Dielectrics&#8217; estimated preliminary adjusted EBITDA for such period is not necessarily indicative of the results to be achieved for any future period. Accordingly, you should not place undue reliance on this preliminary estimate. Dielectrics&#8217; preliminary adjusted EBITDA should be read together with the consolidated financial statements and related notes that will be filed and incorporated by reference to this report in accordance with Item 9.01(a) described below. </font></p>  <p style="margin-left:0in; margin-right:0in;"><font style="color: black; font-size:10pt;">On February 2, 2018, UFP issued a press release relating to the completion of the Company&#8217;s acquisition of Dielectrics.&#160; The press release is attached as Exhibit&#160;99.1 hereto and is incorporated herein by reference.</font></p>  <p style="margin-left:0in; margin-right:0in;"><strong><em><font style="color: black; font-size:10pt;">Limitation on Incorporation by Reference.</font></em></strong><font style="color: black; font-size:10pt;">&#160;&#160;The information furnished in this Item 7.01, including the press release attached hereto as Exhibit&#160;99.1, shall not be deemed &#8220;filed&#8221; for purposes of Section&#160;18 of the Securities Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.</font></p>  <p style="margin-left:0in; margin-right:0in;"><strong><em><font style="color: black; font-size:10pt;">Cautionary Note Regarding Forward-Looking Statements.</font></em></strong><font style="color: black; font-size:10pt;"> &#160;&#160;&#160;&#160;Except for historical information contained in the press release attached as an exhibit hereto, the press release contains forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements.&#160; Please refer to the cautionary note in the press release regarding these forward-looking statements. </font></p> </font></p><p><font style="font-size: 10pt;"><strong>  </strong></font></p><p><font style="font-size: 10pt;"><strong>Item 9.01. Financial Statements and Exhibits.</strong></font></p><p><font style="font-size: 10pt;">
 <p style="margin-left:0in; text-indent:23.1pt; margin-right:0in;"><font style="color: black; font-size:10pt;">(a)&#160;Financial Statements of Businesses Acquired.&#160; The financial statements of </font><font style="font-size:10pt;">Dielectrics required by Item 9.01(a)&#160;to this Current Report on Form&#160;8-K&#160;will be filed by amendment within 71 calendar days after the date this report on Form 8-K must be filed.</font></p>  <p style="margin-left:0in; text-indent:23.1pt; margin-right:0in;"><font style="color: black; font-size:10pt;">(b)&#160;Pro Forma Financial Information. The pro forma financial information required by Item 9.01(b)&#160;to this Current Report on Form&#160;8-K will be furnished by amendment within 71 calendar days after the date this report on Form&#160;8-K must be filed.</font></p>  <p style="margin-left:0in; text-indent:23.1pt; margin-right:0in;"><font style="color: black; font-size:10pt;">(d) Exhibits.</font></p> <table style="border-collapse:collapse !important;" style="border-collapse: collapse; "><tr><td style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><font style="font-size:10pt;"><strong>Exhibit <br /><font><u>Number</u></font></strong></font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;"><strong><u>Description</u></strong></font></td></tr><tr><td style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><font style="font-size:10pt;"><font style="font-size:10pt;"><font style="font-size:10pt;"><font style="font-size:10pt;"><a href="exh_991.htm" rel="nofollow">99.1</a></font></font></font></font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">Press release dated February 2, 2018 of UFP Technologies, Inc. announcing the completion of its acquisition of Dielectrics, Inc. </font></td></tr></table></font></p><p><font style="font-size: 10pt;"></font></p><p><font style="font-size: 10pt;"></font></p><hr style="page-break-after: always;" noshade="noshade" /><p align="center"><font style="font-size: 10pt;"><strong><u>SIGNATURES</u></strong></font></p><p><font style="font-size: 10pt;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td valign="top" width="49%"><font style="font-size: 10pt;">&#160;</font></td><td style="font-size: 12pt;" colspan="2" valign="top"><font style="font-size: 10pt;"><strong>UFP TECHNOLOGIES, INC. <!--UFP Technologies, Inc.--></strong></font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;">&#160;</font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;"></font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">Dated: February 2, 2018</font></td><td width="2%"><font style="font-size: 10pt;">By:&#160;</font></td><td style="text-decoration: underline;" width="49%"><font style="font-size: 10pt;">/s/ Ronald J. Lataille&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;">Ronald J. Lataille</font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;">Chief Financial Officer and Senior Vice President </font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;"></font></td></tr></table><p /></body></html>
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<DOCUMENT>
<TYPE>EX-99.1
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<FILENAME>exh_991.htm
<DESCRIPTION>PRESS RELEASE
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"><html lang="en-US"><head><title>EdgarFiling</title><meta content="text/html; charset=windows-1252" ><meta name="GENERATOR" content="MSHTML 8.00.7601.18094" ></head><body bgcolor="#ffffff"><p style="text-align: right;"><strong>EXHIBIT 99.1</strong></p><p style="text-align: center;"><strong>UFP Technologies Acquires Dielectrics, Inc.</strong></p><p style="text-align: center;" ></p><p>
 <p>NEWBURYPORT, Mass., Feb.  02, 2018  (GLOBE NEWSWIRE) -- UFP Technologies, Inc. (Nasdaq:UFPT), a designer and custom converter of foams, plastics and specialty materials, today announced the acquisition of Dielectrics, Inc.&#160; Founded in 1954 and based in Chicopee, Massachusetts, Dielectrics is a&#160;leader in the design, development, and manufacture of medical devices using thermoplastic materials.&#160; Sales in 2017 were approximately $43&#160;million.&#160;<br ></p>  <p>&#8220;We are very excited to join forces with this highly respected medical technology company,&#8221; said R.&#160;Jeffrey Bailly, chairman, CEO, and president of UFP Technologies.&#160; &#8220;Dielectrics is an outstanding strategic and cultural fit that we believe will make us significantly more valuable to our growing medical customer base.&#160; Today, around 60% of Dielectrics&#8217; customers are our customers too. Because we provide complementary &#8211; not competing &#8211; products and services, we see many opportunities to create powerful synergies and address customer needs in a more comprehensive way.&#8221; </p>  <p>&#8220;In addition to its strong medical customer relationships, Dielectrics brings a superb management team and profitable book of business,&#8221; Bailly said. &#8220;We are committed to continue expanding our medical business, due to its excellent growth potential and high barriers to entry. It's our largest market, and we expect this acquisition to enhance our manufacturing capabilities and add to our earnings right away.&#8221; </p>  <p>Eric Stahl, Dielectrics chairman &amp; CEO, is equally upbeat.&#160; &#8220;UFP is the ideal company for us to partner with,&#8221; said Stahl. &#8220;We have very similar cultures and philosophies, and share a value proposition based on innovative engineered solutions and the ability to solve customers&#8217; most challenging problems.&#160; I am confident that UFP&#8217;s diverse capabilities, strong reputation, and national footprint will enable us to become even more valuable to our customers.&#8221;</p>  <p>UFP Technologies is an innovative designer and custom converter of foams, plastics, and natural fiber materials, principally serving the medical, automotive, consumer, electronics, industrial, and aerospace and defense markets. The UFP team acts as an extension of its customers&#8217; in-house research, engineering, and manufacturing groups, working closely with them to solve their most complex product and packaging challenges.</p>  <p align="justify">This news release contains statements relating to UFP&#8217;s expected financial performance and/or future business prospects, events and plans that are &#8220;forward-looking statements&#8221; as defined under the Private Securities Litigation Reform Act of 1995.&#160; Such statements include, without limitation, statements about the anticipated benefits from UFP&#8217;s acquisition of Dielectrics, expectations about the synergies to be achieved from such acquisition, expectations about the Company's prospects and customer base, the Company's acquisition opportunities and strategies, its participation and growth in multiple markets, its business opportunities, the Company's growth potential and strategies for growth, anticipated revenues and the timing of such revenues, and any indication that the Company may be able to sustain or increase its or Dielectrics&#8217; sales and earnings or sales and earnings growth rates.&#160; Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation risks associated with the identification of suitable acquisition candidates and the successful, efficient execution of acquisition transactions and integration of any such acquisition candidates, including Dielectrics, as well as other risks and uncertainties that are detailed in the documents filed by the Company with the SEC.&#160; Accordingly, actual results may differ materially. Readers are referred to the documents filed by the Company with the SEC, specifically the last reports on Forms 10-K and 10-Q. The forward-looking statements contained herein speak only of the Company's expectations as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions, or circumstances on which any such statement is based.</p>  <p>www.ufpt.com&#160;<br >Contact: Ron Lataille<br >978-234-0926, rlataille@ufpt.com</p> </p><p ></p></body></html>
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