UFP Industries (NASDAQ: UFPI) acquired the operating assets of John Rock, Inc., a pallet manufacturer based in Coatesville, Pa., for approximately $48 million, according to a company statement.

The transaction includes three of John Rock's four locations: Coatesville, Pa., Mifflintown, Pa., and Bowling Green, Va. A sawmill in Dilwyn, Va., will remain with the seller. The acquired operations generate approximately $82 million in annual sales and employ nearly 250 people.

John Rock, a subsidiary of Kamps Pallets, designs and manufactures new pallets across Pennsylvania and Virginia. The acquisition expands PalletOne's geographic reach in the northeast region.

"This acquisition is fundamentally about strengthening our core packaging business and expanding our footprint in a region where we see long-term opportunity," said Will Schwartz, Chief Executive Officer of UFP Industries.

The acquired facilities will be integrated into PalletOne's existing manufacturing network. UFP Industries stated the transaction includes key operating assets to maintain manufacturing and service continuity.

Scott Worthington, President of UFP Packaging, said the company plans to build on John Rock's foundation while integrating the business into its network. The acquisition aims to enhance UFP's ability to serve national customers in the northeast market.