{"id":792034,"date":"2024-12-03T10:14:39","date_gmt":"2024-12-03T15:14:39","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/cea-industries-inc-negotiating-to-acquire-a-leading-specialty-retailer\/"},"modified":"2024-12-03T10:14:39","modified_gmt":"2024-12-03T15:14:39","slug":"cea-industries-inc-negotiating-to-acquire-a-leading-specialty-retailer","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/cea-industries-inc-negotiating-to-acquire-a-leading-specialty-retailer\/","title":{"rendered":"CEA Industries Inc. Negotiating to Acquire a Leading Specialty Retailer"},"content":{"rendered":"
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\n Louisville, Colorado, Dec. 03, 2024 (GLOBE NEWSWIRE) — <\/strong>CEA Industries Inc. (NASDAQ: CEAD, CEADW) (\u201cCEA Industries\u201d or the \u201cCompany\u201d), today announced that it is under a non-binding Letter of Intent (\u201cLOI\u201d)\u201d) to acquire a leading specialty retailer and manufacturer (the \u201cTarget\u201d), which would be paid for with a combination of cash, CEA Industries common shares, and debt.<\/p>\n

\u201cThis proposed transaction offers an exciting opportunity for our shareholders to benefit from a growing and profitable business operating in a high-demand industry,\u201d said Tony McDonald, Chairman and CEO of CEA Industries. \u201cThe Target has a demonstrated track record of double-digit revenue growth, consistent profitability, and positive cash flow. Building on the Target\u2019s solid foundation in a fragmented industry, we plan to utilize our strong balance sheet to scale an even larger specialty retail footprint and drive further growth and enhanced levels of profitability. We are excited about the opportunities this acquisition brings to deliver long-term value to our shareholders.\u201d<\/p>\n

The Target has more than 30 retail locations over a broad geography, with a deep portfolio of trademarks and intellectual property. The Company intends to utilize its strong balance sheet to further expand the Target\u2019s retail footprint through the acquisition of additional stores as well as opening de novo stores, enabling broader market reach and customer accessibility. Additionally, CEA Industries plans to grow the Target\u2019s manufacturing business that supplies house brand and white-label products to other retailers. These strategic initiatives will enable the Company to build on the target\u2019s solid foundation, accelerate growth, and enhance profitability and operational excellence.<\/p>\n

The Company expects to sign a definitive agreement to acquire the Target before year end, with a closing of the transaction targeted for the first quarter of 2025, pending customary closing conditions. Mr. McDonald added \u201cwe look forward to sharing more about this very exciting development in the near future.\u201d<\/p>\n

\n Acquisition Disclaimers<\/strong>\n <\/p>\n

Signing the definitive documentation for the acquisition is subject to the continued evaluation of the Target, including:<\/p>\n