December 20, 2022
N.Y. UV company acquires PURO Lighting & LED Supply Co.
Applied UV, Inc. effectively doubles in size by acquiring Colorado sister companies
New York based, Applied UV, Inc., a publicly traded disinfection technology solutions company, has entered into acquisition agreements for privately-held sister companies PURO Lighting, LLC and LED Supply Co. that would effectively double the size of Applied UV.
LED Supply Co. was founded in the Denver metro area by Brian Stern and Webb Lawrence. The company was founded in 2009 as a distributor and manufacturer of state-of-the-art LED fixtures.
Launched in 2019 – right before the COVID pandemic caused a spike in UV disinfection lighting demand – PURO Lighting was founded by Stern, Lawrence and Jim Colantoni. The company brings UV light disinfection devices to indoor spaces. According to Applied UV, the transaction enables the company access to build upon PURO’s existing commercial relationship with Acuity Brands.
In 2021, Applied UV generated $11.7 million in sales while posting a net loss of $7.4 million. Year-to-date for the nine months ended September 30, 2022, Applied UV revenues have risen to $15.1 million with a $7.2 million net loss.
According to the announcement, the transaction value of Puro Lighting and LED Supply Co. 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. The closing of the acquisitions will be subject to certain standard closing conditions including the approval of the Applied UV board of directors. SEC filings indicate that Applied UV recently entered into a loan and security agreement with Pinnacle Bank that provides for a two year $5 million secured revolving credit facility that became effective on December 9, 2022.
