Benzinga - Applied UV Inc (NASDAQ: AUVI) has agreed to acquire privately held PURO Lighting LLC and LED Supply Co that would effectively double the company's size.
Applied UV develops and acquires infection prevention and control technology in the healthcare, commercial & public venues, food transportation/storage, cannabis, and education vertical markets.
What Happened: Applied UV agreed to merge PURO Lighting and LED Supply with merger subsidiaries.
The combined transaction value of these acquisitions would be approximately $20 million, including a combination of cash and restricted common and restricted preferred shares.
The restricted share part of the deal consideration was based on a price per share of $2.00.
Last week, Applied UV secured $5 million in a revolving credit facility to fund its growth initiatives. Over the past few weeks, the company has increased capital availability by $7.5 million with the closing of this new revolver and $2.5 million in an unsecured loan earlier in December.
Why It Matters: The acquisitions would enable Applied UV to expand the distribution and sales capabilities of FDA-cleared disinfection devices, ultimately positioning the company for more profound expansion into current markets and enhanced revenue growth.
Additionally, the transaction would allow the company to access and build upon PURO's robust commercial relationship with Acuity Brands Inc (NYSE: AYI) and have access to a portion of Acuity's UV product portfolio.
"With an estimated additional $18 million in revenue for the 12 months ending September 30, 2022, the PURO and LED Supply acquisitions would effectively double the size of our company," said Max Munn, Applied UV Founder & President.
"We anticipate that the combined company will likely generate approximately $45-$50 million of revenues in FY 2023, with a strong balance sheet to support the revenue growth. Further, we anticipate significant cost savings through synergies that will reduce our overhead expenses and improve our margins," Munn added.
Price Action: AUVI shares closed at $1.03 on Monday.
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