UFP Industries acquires Advantage Label & Packaging for $16M

Chuck Krawczak. Courtesy UFP Industries

UFP Industries added labels and labeling equipment to its industrial packaging offerings through the acquisition of a Grand Rapids company.

Grand Rapids Township-based UFP Industries (Nasdaq: UFPI) on Monday, Dec. 20, said its affiliate, UFP Packaging, acquired Advantage Label & Packaging, a provider of labels and related equipment used in industrial packaging, for approximately $16 million. The transaction also includes $2.9 million for related real estate, as well as incentive payments of up to $4.5 million over five years if certain performance goals are met.

Founded in 1996, Advantage Label provides blank and customized labels, printers, label applicators and other packaging supplies. It serves industries such as beer and beverage, body armor, food production and processing, greenhouse and nursery, hobby and craft, manufacturing, and automotive.

The company had trailing 12-month sales through November 2021 of about $19.8 million.

Advantage Label’s former shareholder group and management team, including President Brad Knoth and Sales Manager TJ Long, will continue in leadership roles following the acquisition.

“Advantage Label’s full suite of labeling solutions, including equipment like Line Boss, a proprietary label application machine for agricultural containers, expands UFP’s ability to provide customers a broad spectrum of industrial packaging products,” said Chuck Krawczak, vice president of UFP Packaging. “Companies associated with packaging and tracking packages are growing quickly, and the addition of Advantage Label will allow us to participate in that growth.”

Brad Knoth said he is proud of Advantage Label and excited by the possibilities the transaction will make possible.

“By joining the UFP family of companies, Advantage Label can make investments that will expand our capacity and reach,” he said. “We look forward to contributing to UFP’s mission to become the leading global packaging solutions provider.”

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