The Acquisition of PURO Lighting, LLC and LED
Supply Co. Would Expand AUVI’s Capabilities to Sell Its FDA Cleared
Disinfection Products and Solutions and Also Would Provide Access
To PURO’s Strategic Relationships
Applied UV, Inc. (NASDAQ:AUVI) ("Applied UV" or the "Company"),
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. (NYSE:AYI) (“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.”
Today’s 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.
About Applied UV
Applied UV, Inc. (“AUVI”) develops and acquires proprietary
infection prevention and control technology in the healthcare,
commercial & public venues, food transportation/storage,
cannabis and education vertical markets. The Company has two wholly
owned subsidiaries - SteriLumen, Inc. (“SteriLumen”) and Munn
Works, LLC (“Munn Works”). Sterilumen owns and markets a portfolio
of products with advanced pathogen elimination technology, branded
Airocide® by Sterilumen, Scientific Air™ by Sterilumen, Airoclean™
420 by Sterilumen, and Lumicide™ by Sterilumen.
Leading organizations globally rely on AUVI’s air purification
systems to completely eliminate airborne and surface infections,
mold, bacteria, allergens and other contaminants. Our customers
include Kaiser Permanente, NY Health+Hospitals, Baptist Health
South Florida, Boston Red Sox’s Fenway Park, JetBlue Park, France’s
Palace of Versailles, Invited Clubs, Whole Foods, Del Monte Foods,
U.S. Department of Veterans Affairs, and more.
NASA used Airocide’s proprietary Photocatalytic Oxidation
technology to sanitize the International Space Station.
Scientifically proven to reduce Healthcare Acquired Infections
(HAI), Scientific Air™ offers a proprietary 3-stage technology
integrating HEPA filters, ultraviolet germicidal light chamber and
active carbon substrate.
For information on Applied UV, Inc., and its subsidiaries,
please visit the following websites: https://www.applieduvinc.com/
https://www.sterilumen.com https://airoclean420.com/
About LED Supply Co.
LED Supply Co. was founded in 2009 as a distributor and
manufacturer of state-of-the-art LED fixtures. Identified as one of
Forbes Fastest Growing Companies, today LED Supply Co. is a
national lighting, controls, security and technology distributor
managing some of the largest national accounts and lighting design
projects throughout the US market. Since beginning operations, LED
Supply Co has completed over 2,500 LED lighting and controls
projects throughout North America and continues to grow and expand
operations through its national sales force and e-commerce site.
For more information, visit www.ledsupplyco.com.
About PURO UV Disinfection Lighting
Launched in 2019 in Lakewood, Colorado, PURO® Lighting promotes
health and safety by bringing proven and powerful UV light
disinfection devices to all indoor spaces where people gather
including hospitals, schools and universities, medical and
manufacturing facilities, transportation, office buildings, and
much more, all without the use of chemicals. From HVAC systems to
in room and upper air disinfection, PURO Lighting products offer a
wide variety of UV technologies to provide continuous disinfection
of air in occupied spaces and can rapidly disinfect any indoor area
inactivating up to 99.9% of viruses, bacteria, fungi and more
including today's SARS-CoV-2 virus. Our proprietary software,
PURONet UV Disinfection Control System, allows for real time data
collection and reporting to help create a safer environment in all
spaces. For more information, visit www.purolighting.com.
Forward-Looking Statements
The information contained herein may contain “forward‐looking
statements.” Forward‐looking statements reflect the current view
about future events. When used in this press release, the words
“anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,”
“plan,” or the negative of these terms and similar expressions, as
they relate to us or our management, identify forward‐looking
statements. Such statements include, but are not limited to,
statements contained in this press release relating to the view of
management of Applied UV concerning its business strategy, future
operating results and liquidity and capital resources outlook.
Forward‐looking statements are based on the Company’s current
expectations and assumptions regarding its business, the economy
and other future conditions. Because forward–looking statements
relate to the future, they are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict.
The Company’s actual results may differ materially from those
contemplated by the forward‐looking statements. They are neither
statements of historical fact nor guarantees of assurance of future
performance. We caution you therefore against relying on any of
these forward‐looking statements. Factors or events that could
cause the Company’s actual results to differ may emerge from time
to time, and it is not possible for the Company to predict all of
them. The Company cannot guarantee future results, levels of
activity, performance, or achievements. Except as required by
applicable law, including the securities laws of the United States,
the Company does not intend to update any of the forward‐looking
statements to conform these statements to actual results.
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version on businesswire.com: https://www.businesswire.com/news/home/20221220005203/en/
Max Munn, President, Founder and a Director Applied UV Inc.
m.munn@sterilumen.com
Brett Maas, Managing Principal Hayden IR brett@haydenir.com
(646) 536-7331
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