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Since 2019, Applied UV (NASDAQ: AUVI) has been on a mission to eradicate pathogens via its portfolio of disinfection technologies.
Blending air purification machines with industry-first drain and sink sterilization, Applied UV’s product portfolio is an eclectic mix of award-winning pathogen killers. Its Sterilumen Airocide® devices were designed for use by NASA and won the Edison Awards for Excellence in new product and service development in 2014. Its two other product lines, Scientific Air and Lumicide are used in a number of hospitals across the U.S.
In 2019, the importance of sterilization technology took an unprecedented leap as the COVID-19 pandemic shocked the globe. Applied UV had a direct role to play in the fight against this pandemic, issuing its products for sale to areas with high human congestion and vulnerability like hospitals.
The pandemic only strengthened Applied UV on its mission to create healthier and safer spaces for people to live, work and play. Their primary mode of doing so is through the development and acquisition of high-quality, infection-prevention technology in the healthcare, hospitality and commercial markets.
On Dec. 19, Applied UV announced two mergers with Puro Lighting LLC and LED Supply Co. that effectively “doubled the size of the company,” reportedly positioning it for “significant future revenue growth.”
Applied UV Merges With Puro Lighting LLC And LED Supply Co.Applied UV’s two “mergees” offer unique benefits to the company.
Puro Lighing LLC, for example, has a host of ultra-violet (UV) light disinfection devices that are applicable to indoor spaces like hospitals, schools, universities, medical and manufacturing facilities, transportation, office buildings and much more. The company’s portfolio may have an edge over competitors, as UV technology is far less invasive than its chemical counterparts. Additionally, Puro has an existing relationship with Acuity Brands Inc. (NYSE: AYI), a lighting and building management firm, to which Applied UV now has access.
LED Supply Co, on the other hand, is a major distributor and manufacturer of state-of-the-art LED fixtures and is one of the fastest-growing companies according to Forbes. Since its inception, LED Supply Co. has completed over 2,500 LED lighting and controls projects throughout North America.
According to Applied UV, the strategic mergers of privately-held Puro Lighting LLC and LED Supply Co. will allow the company to expand into international vertical markets and improve its distribution throughout North America. The mergers, alongside the 2021 acquisitions of Airocide®, KES Science & Technology, and Scientific Air Management, create one of the broadest portfolios of patented disinfection technologies on the market today, capable of treating everything from schools and hospitals to agricultural products like cannabis.
In broader terms, the current mergers allow Applied UV to tap into PURO’s capable sales team, target new markets, more easily serve commercial facilities and leverage PURO’s technology to bring it to a broader range of customers.
“With an estimated additional $18 million in revenue for the 12 months ending September 30, 2022, the PURO and LED Supply mergers effectively double the size of our company,” said Max Munn, Applied UV Founder and President. “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 with both PURO Lighting and LED Supply with a transaction value of approximately $20 million. The approximate $20 million deal in consideration for this transaction is a combination of cash and restricted common and preferred shares. The restricted common and preferred shares have a $2 value, significantly above current market prices.
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Applied UV is focused on the development and acquisition of technology that addresses infection control in the healthcare, hospitality, commercial and municipal markets. The Company has two wholly owned subsidiaries - SteriLumen, Inc. (“SteriLumen”) and Munn Works, LLC (“Munn Works”). SteriLumen’s Airocide® air purification devices are research-backed, clinically proven, and developed for NASA with assistance from the University of Wisconsin. Airocide® is listed as an FDA Class II Medical device, utilizes a proprietary photo-catalytic (PCO) bioconversion technology that draws air into a reaction chamber that converts damaging molds, microorganisms, dangerous airborne pathogens, destructive VOCs, allergens, odors, and biological gasses into harmless water vapor and green carbon dioxide without producing ozone or other harmful byproducts. Airocide® applications include healthcare, hospitality, grocery chains, wine-making facilities, commercial real estate, schools, dental offices, post-harvest, grocery, cannabis facilities, and homes. SteriLumen’s connected platform for Data-Driven Disinfection™ applies the power of ultraviolet light (UVC) to destroy pathogens safely, thoroughly, and automatically, addressing the challenge of healthcare-acquired infections ("HAIs"). Targeted for use in facilities that have high customer turnover such as hospitals, hotels, commercial facilities, and other public spaces, the Company’s Lumicide™ platform uses UVC LEDs in several patented designs for infection control in and around high-traffic areas, including sinks and restrooms, killing bacteria, viruses, and other pathogens residing on hard surfaces within devices’ proximity. The Company’s patented in-drain disinfection device, Lumicide Drain, is the only product on the market that addresses this critical pathogen-intensive location.
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Contact DetailsBrett Maas- Hayden IR
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