FORT EDWARD – With no apparent heir and amid ongoing consolidation in the industry a leading maker of wooden shipping pallets has been sold to a Canadian firm.
But the sale of Pallets Inc. to Damabois of Saint Damase, Quebec, should put the Fort Edward manufacturer in a good position to grow. And the three dozen employees of Pallets Inc. will remain in place, said Clint Binley, 55, the third generation of Binleys running the firm with his father. Like Pallets Inc., Damabois is a family owned company.
“They’ve already expanded some machinery in the facility already,” Binley said of Damabois, adding that they were in talks with the new owners for about a year before the sale, which closed in February. The price of the transaction was not disclosed.
Pallet-making is a localized and key component of any regional economy, since they are used in shipping everything from food to construction supplies to pharmaceuticals and any other number of retail items. Pallets Inc. serves an area within about a 200-mile radius, Binley said.
The firm sells new and refurbished pallets and also supplies local paper mills.
One of the advantages of the acquisition was Damabois’ access to lumber from eastern Canada, Binley said.
While Pallets Inc. still gets some lumber from New York and New England, many of the small sawmills that traditionally supply pallet makers in the U.S. have disappeared over the decades. Damabois also operates its own sawmill in Quebec.
“Integrating with them removes the middle man,” Binley said.
Canada is known for having more efficient sawmills and they benefit from the relatively cheap power available in Quebec, which relies heavily on its hydroelectric resources, he said.
Pallets Inc. sells more than $12 million worth of pallets annually.
The company was started…
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