Applied UV (AUVI) announced two acquisition agreements that it said "would effectively double the size of the company, positioning it for significant future revenue growth." The strategic acquisitions of privately-held PURO Lighting and LED Supply Co. "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," Applied UV stated. Applied UV entered into definitive agreements effective December 19 to merge both PURO Lighting and LED Supply with merger subsidiaries. The combined transaction value of these acquisitions would be approximately $20M. The approximate $20M 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. "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. 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," said Max Munn, Applied UV Founder and President.
Published first on TheFly
