One of the nation’s largest pallet companies just got bigger by acquiring three John Rock production facilities and Berry Pallets, Inc. of Waseca, Minnesota.
For about $68 million, UFP Industries, which owns national pallet supplier PalletOne, added two world-class pallet manufacturing and lumber processing operations to expand its footprint in the Northeast and the Upper Midwest. The Coatesville, Pennsylvania John Rock headquarters has had a long-time reputation as one of the biggest and most automated pallet facilities in the country. John Rock Inc. was sold about three years ago to Kamps Pallets by the former owner, Bill MacCauley.
At the time MacCauley initially sold his company, the Coatesville plant produced more than 500,000 new pallets a month. In addition, UFP is adding John Rock’s Mifflintown, Pa. and Bowling Green, Va facilities. The remaining sawmill at Dillwyn, Va. will remain with the seller. The acquisition of the three locations adds approximately $82 million in annual sales and brings nearly 250 employees into the UFP family.
Berry Pallets has about $23 million in annual sales and 75 employees. While the company is known for producing quality new pallets, it does supply cut stock as well as used and combo pallets to customers. With monthly production of more than 95,000 pallets, the facility has state-of-the art equipment from AIT, Storti, PRS, Alliance Automation, Viking and more.
Berry Pallets doubled its building size in 2021 and now has a 76,000 square foot facility and enough covered lumber storage to store up to 60 rail cars of material. This lumber storage capacity allows the company to buy in bulk for optimum pricing.
UFP Industries stated that these transactions position the company for continued growth, immediate capacity expansion and long-term optionality to serve a growing customer base.
Kamps initially bought John Rock in 2023 as a move to grow new pallet manufacturing capacity and vertical integration. But the company explained the sale by saying it will sharpen the company’s focus on its core business. Kamps CEO, Mitchell Kamps, said, “The transaction sharpens Kamps’ focus on its core strength in reconditioned pallets, remanufactured pallets, custom pallets, and reusable packaging management, while continuing to utilize Kamps asset-based operations and expansive network of partners to provide new pallet manufacturing capabilities as needed – creating more flexible, comprehensive pallet life cycle services for customers across the country.” Kamps will still operate some sawmill facilities as well as pallet manufacturing operations in other areas of the country
With a second-generation running operations, why sell now? Richard Berry, founder and co-owner of Berry Pallets, explained, “Joining a larger organization gives us advantages when it comes to competing on national business, handling tricky HR issues, improving benefits to attract higher-quality employees and accessing compliance expertise in an increasingly complex regulatory landscape.” Both Richard and his son, Curtis, will be staying on with the company to oversee daily operations.
While these acquisitions show that M&A activity isn’t completely dead in the pallet sector, it also highlights that buyers will be pickier, looking for some of the best facilities and companies at lower valuations than what occurred during the pandemic pallet boom.
