MOUNT VERNON, N.Y. — Applied UV, Inc. a proven disinfection technology solutions leader, announces two acquisition agreements that would effectively double the size of the company, positioning it for significant future revenue growth.
The strategic acquisitions of privately-held PURO Lighting, LLC (“PURO”) and LED Supply Co. (“LED Supply”) would enable Applied UV to expand distribution and sales capabilities of a broad range of highly complementary, proprietary and patented, FDA-cleared disinfection devices, ultimately positioning the company for deeper expansion into current markets and enhanced revenue growth after closing. In addition, the transaction would allow Applied UV to access and build upon PURO’s existing strong commercial relationship with Acuity Brands, Inc. (“Acuity”).
“Along with our proprietary FDA cleared disinfection technology, the PURO and LED Supply Co acquisitions would help us further our vision of being the leading player in the disinfection technology space,” said Max Munn, Applied UV Founder and President. “The acquisitions would support the expansion of product lines with an end-to-end solution for pathogen destruction, enhancing our presence in key vertical markets, leading to rapid revenue enhancement,” said Max Munn, Applied UV Founder and President. “By leveraging PURO’s existing relationships, we would also have access to a portion of Acuity’s UV product portfolio.”
The announcement continues Applied UV growth strategy, enabling the company to serve key domestic and international vertical markets such as healthcare, agriculture, cannabis, alcohol (wine), education and hospitality. The acquisitions of PURO and LED Supply, together with the 2021 acquisitions of Airocide®, KES Science & Technology, and Scientific Air Management, creates one of the broadest portfolios of patented air disinfection and purification technologies capable of addressing every major commercial market, including hospitals and assisted living facilities, schools, government and military buildings, prison systems, hotels, commercial buildings as well as food transportation and storage that extends the shelf life of agricultural products, including cannabis.
“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 Munn. “We anticipate that the combined company is likely to 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 therefore improve our margins.”
Applied UV entered into definitive agreements effective December 19, 2022 to merge both PURO Lighting and LED Supply with merger subsidiaries. The combined transaction value of these acquisitions would be approximately $20 million. The approximate $20 million in consideration for these transactions is a combination of cash and restricted common and restricted preferred shares. The portion of the purchase price that consists of the restricted common shares was based on a price per share of $2.00, which is significantly above current market prices. The closing of the acquisitions will be subject to certain standard closing conditions including the approval of the Applied UV board of directors.
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