UFP Industries has acquired Oldcastle APG’s MoistureShield decking operating assets in a move that significantly expands UFP’s Deckorators wood-plastic composite (WPC) decking capacity.
According to UFP, the acquisition positions Deckorators for long-term growth in the outdoor living market. The purchase enhances Deckrators’ product portfolio with the acquisition of manufacturing assets, inventory, product brands, and proprietary CoolDeck composite decking technology designed to reduce heat absorption compared to standard composite decking.
Todd Tomalak, principal, advisory of building products for Zonda, says the additional investment in the composite decking category by UFP is “intriguing” and positions the company to capitalize on the shift to longer periods between remodels, which tend to use premium products.
“Composite decking has greater Home Equity Line of Credit (HELOC) exposure/sensitivity versus other categories of remodel, so UFP may benefit at the margin as homeowners begin to tap accrued home equity,” Tomalak said.
Additionally, the added capacity through the acquisition enables Deckorators to scale production, position the brand to better serve customers, and support new product introductions.
“This acquisition is fundamentally about our commitment to strengthen our core business and adding capacity to execute our growth plans,” Will Schwartz, CEO of UFP Industries, said. “By adding proven manufacturing assets and complementary technologies to the Deckorators business, we are removing constraints, expanding capacity, and putting the brand in a stronger position to meet demand.”
The acquired operations will be integrated into Deckorators’ existing manufacturing network, allowing opportunities to optimize production across locations. UFP said the added capacity will allow Deckorators to better support national retail partners, dealers, and contractors while maintaining its focus on quality and service.
“One of our strategic objectives is to expand Deckorators’ production capacity geographically,” Schwartz said. “This was an attractive investment opportunity that met our internal return targets and will allow us to meet these growth plans ahead of greenfield expansion opportunities.”
Landon Tarvin, president of UFP retail solutions, which includes the Deckorators brand, said with the investment and additional capital investments at the Deckorators facility, UFP has the ability to double the deck brand’s overall capacity of WPC to a total of $200 million by 2027.
“Additional capacity allows UFP to better support major retailers, which are gaining influence in premium remodel categories,” Tomalak said. “There may be an e-commerce benefit too as a result—retailers gaining share within e-commerce, including outdoor categories.”
Oldcastle APG will retain and continue operating their RDI Railing and Catalyst Fence Solutions brands following the deal.
