By Bridget Levitz, Truth Staff
ELKHART -- Banks Lumber was sold Friday to Michigan-based Universal Forest Products.
The $47 million acquisition unites two companies that have long been competitors in the lumber industry. Both are recognized as significant suppliers to the manufactured-housing market.
Banks Lumber, a subsidiary of Elkhart-based Banks Corp., serves the manufactured housing, mobile office, modular and recreational vehicle industries with roof trusses, floor systems and engineered wood products.
"We've known Banks Lumber many years," said Universal Corporate Communications Director Lynn Afendoulis. "We respect their company and its people."
Banks Lumber fits Universal's acquisition criteria and long-term goals, she said.
Locally, the company's manufacturing division on C.R. 17 and the Collins Road truss division have been purchased. Universal also will operate out of Banks facilities in Florida, Tennessee and Texas.
The deal affects about 465 Banks Lumber employees, including about 130 in Elkhart.
All employees in the two Elkhart facilities will move onto Universal's payroll, Brian Buckley, vice president of human resources for Banks Corp., confirmed Friday.
Buckley said he and other employees learned of the sale just this week.
"No one that didn't have ownership in the company knew," he said.
Universal Forest is a publicly traded company while Banks Lumber is privately held by Banks Corp., owned by brothers Bill Banks Sr. and John Banks.
Plant employees were notified at 4:15 p.m. Wednesday, said Buckley. Some of Banks' key employees were told Monday that the sale was possible.
"Universal Forest Products is a stable company -- one that hopefully will be a benefit to the community," Brian Gildea, economic development manager for the City of Elkhart, said of the deal. "The thing I'm most interested in is how many jobs they will keep. From my understanding it's an operations acquisition."
The Banks Lumber name will be kept in Elkhart and little job impact should be felt, according to Afendoulis.
"Operations in our Elkhart locations will continue business as normal," Buckley said. "The place hit the hardest was probably right here at corporate."
Up to 10 positions from Banks' downtown office along the Elkhart River will be eliminated, he said.
Several key executives -- Bill Banks Sr., Banks Lumber President Steve Brown and Vice President of Sales Chip Manger -- will join Universal.
Universal Forest Products will retain all employees in Banks Lumber operations in Auburndale, Fla., Morristown, Tenn., and Hillsboro, Texas, said Buckley.
In Sylvester, Ga., all but seven employees will be kept but moved to Universal's established plant there. Banks' small Stayton, Ore., plant, which opened less than a year and a half ago, will close, displacing about 25 workers.
The acquisition moves Universal toward its goal of reaching $4 billion in sales by 2010. In 2005, Banks Lumber posted sales of about $147 million and Universal reached $2.7 billion.
Another attraction of Banks Lumber, said Afendoulis, is that it opens the recreational vehicle market to Universal. Universal plans to dedicate one of its Indiana-area facilities to the RV market in early 2007 to expand that business.
Elkhart is being considered in that decision, though no choice has been made, Afendoulis said. Universal already has operations in Granger and Indianapolis.
Buckley's been fielding calls since the announcement from employees concerned about their jobs. Now that concerns have been put to rest, Buckley says excitement is building.
"(Employees) see the real opportunity here," he said. "When two strong companies merge, it just gives you even more stability moving forward."