News Release
Applied UV (NASDAQ: AUVI) Effectively Doubles Its Size Following A Merger That Could Help Shape The Industry – A Brief Look At The Company
Applied UV, Inc.
By Ernest Dela Aglanu, Benzinga A recent merger between Applied UV Inc. (NASDAQ CM: AUVI), Puro Lighting (PURO), and LED Supply Co. (LED Supply) seems to have triggered some excitement in the ultraviolet (UV) disinfection equipment industry. For industry watchers, particularly investors, who are constantly on the hunt for viable investment opportunities, the merger could be on their radar, especially as such a deal can shape the sector’s future. Address A Growing UV Disinfection Market Applied UV believes that the PURO merger further positions it to address a growing air disinfection market trend that aligns with the White House Clean Air Initiatives implemented during the height of the COVID-19 pandemic. The initiative was designed to protect consumers and businesses against existing and future airborne pathogens allowing economies globally to remain open. In terms of the overwhelming opportunities the deal presents, Max Munn, CEO of Applied UV, explained in a press release that it heightened the significant synergies between Applied UV and PURO. The company's acquisition of PURO adds a powerful monitoring software platform that opens new opportunities to interconnect its portfolio of UV technology solutions. Puro already has a strong presence in various sectors, such as education, government, and healthcare. These sectors have some of the strongest growth opportunities in the category, and the company believes that specializations in these sectors complement the current sectors that Sterilumen serves — food Storage, food processing, cannabis and horticulture. “These mergers expand our addressable market significantly, and PURO’s strong, strategic relationship with Acuity and national distributors provides us with additional opportunities to advance our growth agenda and increase returns for our investors,” he said. Applied UV is eyeing being a leading player in an ever-growing UV disinfection equipment industry which also has players like Xylem Inc. (NYSE: XYL), Xenon Pharmaceuticals Inc. (NASDAQ: XENE), Halma Plc. (LON: HLMA) and Calgon Carbon Corp. Currently, there is an increase in the adoption of UV in medical care, fueling the growth of the global disinfection equipment market. The market is anticipated to reach $6.17 billion by 2030 and is expected to expand at a compound annual growth rate (CAGR) of 5.7% from 2022 to 2030. Grand View Research observed that increased government initiatives and rising demand for UV disinfection equipment from healthcare organizations will continue to drive the sector’s growth. The technology and work of companies like Applied UV can never be overlooked, especially in medical care. Increasingly, countless industries, such as healthcare, are realizing the benefits of protecting patients and preventing infection with UV light disinfection at health facilities. For example, UVC radiation emitted by UV germicidal lamps is known to effectively breach the cells of microorganisms, making them non-viable and unable to replicate or infect patients and medical personnel at hospitals. Applied UV prides itself as a global leader that applies the power of narrow-range ultraviolet light for surface areas and catalytic bioconversion technology for air purification to destroy pathogens safely, thoroughly, and automatically. Two Subsidiaries And Segments The company’s major selling point could be its two wholly-owned subsidiaries — SteriLumen Inc. and Munn Works LLC. SteriLumen offers a portfolio of technologically advanced, energy-efficient air purifier and surface disinfectant systems: Airocide® by Sterilumen, Scientific Air™ by Sterilumen and Lumicide™ by Sterilumen. SteriLumen’s connected platform for Data Driven Disinfection™ applies the power of ultraviolet light to destroy pathogens safely, thoroughly, and automatically, addressing the challenge of healthcare-acquired infections. Airocide®’s applications include healthcare, hospitality, grocery chains, wine-making facilities, commercial real estate, schools, dental offices, post-harvest, grocery, cannabis facilities and homes. Targeted for use in facilities with high customer turnover, such as hospitals, hotels, commercial facilities, and other public spaces. The 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 second subsidiary, Munn Works, is a global company that manufactures the highest quality mirrors and case goods. From statement pieces that have the impact of original art to meticulous high-volume production for guest rooms or multi-family projects, the company works closely with designers to achieve the perfect balance of aesthetics and economics. The company has the following reportable segments that are driving growth: Disinfection segment: The design, manufacture, assembly and distribution of disinfecting systems for use in healthcare, hospitality, food, wine, and commercial municipal and residential markets. The disinfection segment addresses heating, ventilation, and air conditioning (HVAC) in public, government, municipal, retail spaces and buildings. Hospitality segment: The manufacture of fine mirrors and furniture specifically for the hospitality industry. Applied UV’s merger with LED Supply is key here. LED Supply is a strong player in the commercial lighting space, and the company hopes to bring expertise in design and specification for the multifamily space. It complements the hospitality category and will lead to synergistic revenue opportunities for Munn Works and LED Supply. SG&A Translating Into Cost Reductions? Apart from the broader addressable market and cross-selling opportunities, including increasing revenues, the merger could present synergies that might ultimately translate into cost reductions. A cursory look at Applied UV’s financial results for Q3 2022 showed that Selling, General, and Administrative (SG&A costs for the three months ended September 30, 2022, increased to $3.5 million compared to $2.7 million for the three months ended September 30, 2021. This increase of approximately $822,000 was driven primarily by the expansion of the disinfection segment with the acquisition of KES and SciAir; the expansion of the hospitality segment with the addition of the VisionMark acquisition; and corporate segment expenses due to increased consulting, legal, accounting and infrastructure costs related to the initial integration of the operations of the company’s strategic acquisitions. SG&A costs decreased by $526,000 from last quarter, and the company anticipates efficiency gains this year as it fully integrates its acquisitions and leverages synergies where practical. With a larger team that will collaborate on sales and marketing strategies, new product development, and engineering now at its disposal, Applied UV could eye new acquisitions that could lead to revenue growth for investors and value for customers. For investors looking to invest in medical technology companies or stocks, Applied UV’s growth potential could be very attractive. This article was originally published on Benzinga here. 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. This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice. Contact Details Brett Maas- Hayden IR brett@haydenir.com Company Website https://www.applieduvinc.com/
February 03, 2023 09:25 AM Eastern Standard Time
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