Our guest on Episode 13 of Compounders was Jeff Bailly, the Chairman and CEO of UFP Technologies (Ticker: UFPT). UFP is a $475 million market cap company that specializes in designing foams, films, and plastic materials for the medical, automotive, consumer, and aerospace markets in the United States. Jeff joined the company in 1988 and became CEO in 1995.
Jeff has been instrumental in helping turn UFP into the company it is today. After years of somewhat limited growth, UFP made its largest acquisition ever in 2018—of a company called Dielectrics—and that deal has transformed the company’s margin profile and growth trajectory. And the big changes that have occurred since that deal have not gone unnoticed by the stock market. Accordingly, I thought it would be really instructive to hear from Jeff about the process that has led to UFP’s recent success.
In this enlightening discussion, we covered:
- The genesis of the Dieletrics deal and the strategy surrounding moving into medical end markets;
- Jeff’s thoughts on the key elements that have allowed the stock to appreciate to a level over 20 times its value when Jeff became CEO;
- The benefit of being patient and having a willingness to suffer as CEO;
- Areas in which UFP still has a long runway to get better; and
- What Jeff has learned about hiring and retention over the years
*Just one disclosure to note: Cove Street owns UFPT stock.
Please enjoy the interview at the following sites:
YouTube: https://www.youtube.com/watch?v=PnjqH-hqu9g
Apple: https://podcasts.apple.com/us/podcast/putting-the-customer-first-for-25-years-with-jeff/id1579124518?i=1000539734127
Spotify: https://open.spotify.com/episode/2vBjOb4UyhdKFWZXKm57Em
Podbean: https://compounders.podbean.com/e/putting-the-customer-first-for-25-years-with-jeff-bailly-ceo-of-ufp-technologies-inc-nasdaq-ufpt/
Also, if you have any comments, feedback, or guest recommendations, please contact us at podcast@covestreetcapital.com. You can also follow the podcast on Twitter @ https://twitter.com/CompoundersPod.
If you missed the last episode with Adam Symson, CEO of The E.W. Scripps Company, you can view it here.
