UFP Industries, Inc. completed the acquisition of PalletOne, Inc. from Equus Total Return, Inc. and others for approximately $260 million.
December 27, 2020
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UFP Industries, Inc. (NasdaqGS:UFPI) agreed to acquire PalletOne, Inc. from Equus Total Return, Inc. (NYSE:EQS) and others for approximately $230 million on November 11, 2020. UFP Industries, Inc. also agreed to pay $18 million for PalletOne, Inc. recent capital expenditures. The purchase price is subject to certain adjustments. The purchase price will be funded using the UFP Industries, Inc. cash reserves, which currently are total more than $400 million. PalletOne, Inc. and its affiliates had 2019 sales and adjusted EBITDA of $525 million and $37 million. The PalletOne, Inc.'s 1500 plus employees will join the company and the management team, including President Howe Wallace will continue to lead the company. The transaction is subject to a net working capital adjustment, pending customary closing conditions and regulatory approval. As of December 10, 2020 UFP Industries, Inc. Board of Directors approved the agreement. The transaction is expected to close on December 28, 2020. Christina Marshall and David Oden from Haynes and Boone, LLP acted as legal advisor to PalletOne, Inc. Peter G. Roth and Jacob A. Droppers from Varnum LLP acted as legal advisor to UFP Industries, Inc.
UFP Industries, Inc. (NasdaqGS:UFPI) completed the acquisition of PalletOne, Inc. from Equus Total Return, Inc. (NYSE:EQS) and others for approximately $260 million on December 28, 2020. The purchase price assumes a cash-free, debt-free balance sheet and an agreement to pay $21 million for PalletOne, Inc. recent capital expenditures and other investments. The proceeds from the sale of the $150 million Series E, F and G Senior Notes have been used to fund the acquisition. BlackArch Partners LLC acted as financial advisor for management and shareholders of PalletOne.
EQUUS Total Return, Inc. (the Fund) is a closed-end management investment company. Its investment objective is to maximize the total return to the Company's stockholders in the form of current investment income and long-term capital gains by investing in the debt and equity securities of small and middle market capitalization companies that are generally not publicly traded at the time of its investment. It seeks to invest in companies pursuing growth through acquisition or organically, leveraged buyouts, management buyouts and recapitalizations of existing businesses or special situations. Its income-producing investments consist of debt securities, including bonds, subordinated debt, debt convertible into common or preferred stock, or debt combined with warrants and common and preferred stock. It invests in the portfolio company, Equus Energy, LLC, which makes investments in companies in the energy sector, with particular emphasis on income-producing oil and gas properties.
EQUUS TOTAL RETURN, INC. 
