UFP buys MoistureShield plant in Springdale for $7.4 million

MoistureShield Inc., a wood composite decking company and division of outdoor living products manufacturer Oldcastle APG, was acquired Monday (April 6) by Grand Rapids, Mich.-based UFP Industries Inc. Financial terms of the deal were not disclosed.

MoistureShield, formerly AERT, operates a more than 150,000-square-foot plant on about 33 acres at 914 N. Jefferson St. According to property records, UFP bought the property for $7.4 million on Monday.

According to a news release, acquisition includes MoistureShield’s decking operating assets and will expand Deckorators wood-plastic composite decking capacity, enabling it to scale production.

“This acquisition is fundamentally about our commitment to strengthen our core business and adding capacity to execute our growth plans,” said Will Schwartz, CEO of UFP Industries. “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. One of our strategic objectives is to expand Deckorators’ production capacity geographically. 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.”

The purchase enhances Deckorators’ product portfolio with the acquisition of manufacturing assets, inventory, product brands and proprietary CoolDeck composite decking technology, which is designed to reduce heat absorption compared to standard composite decking, according to the press release.

The acquired operations will be integrated into Deckorators’ existing manufacturing network and create opportunities to improve production and incorporate additional composite technologies into Deckorators products. The brand will be able to better support national retail partners, dealers and contractors while maintaining focus on innovation, quality and service. Oldcastle APG will retain and continue operating its RDI Railing and Catalyst Fence Solutions brands.

“This acquisition allows us to support customers more effectively today while creating the runway we need to expand our product mix and grow the Deckorators brand over the long term,” said Landon Tarvin, president of UFP Retail Solutions, which includes the Deckorators brand in its portfolio. “The facility provides immediate capacity for additional sales with opportunities to add capacity in the future as sales growth objectives are achieved. We expect that with both this investment and additional capital investments at this location, we will have the ability to double Deckorators’ overall capacity of WPC to a total of $200 (million) by 2027.”

In 2022, the Springdale plant underwent an expansion that doubled its manufacturing capacity. The expansion followed a 2021 project to increase capped composite decking production by up to 50%.

Atlanta-based Oldcastle APG acquired MoistureShield in 2017, launching the company into the composite decking category.