Lakeland Fire + Safety Enhances U.S. Footprint with New Deals
Lakeland Fire + Safety's Strategic Acquisitions
In an exciting move for the firefighting services sector, Lakeland Industries (NASDAQ: LAKE), a leading manufacturer of protective garments, has successfully acquired Arizona PPE Recon, Inc. and California PPE Recon, Inc. This strategic expansion will significantly enhance Lakeland's presence and service offerings in the U.S. fire protection market.
Details of the Acquisitions
The acquisition of Arizona PPE was finalized as an all-cash transaction worth around $4 million, while the California PPE deal totaled approximately $5.5 million. This sum was comprised of about $3.4 million in Company stock and $2.1 million in cash, subject to standard post-closing adjustments. Together, these acquisitions are projected to contribute roughly $5 million in annual recurring revenue to Lakeland.
Arizona PPE Recon, Inc.
Arizona PPE holds a commendable position as a UL-certified independent service provider specializing in the decontamination, inspection, and repair of firefighting gear within the Arizona market. The company, which offers educational programs to fire departments, plays a crucial role in adhering to NFPA 1851 standards. Founded in 2016 by Scott and DeAnna Petersen, Arizona PPE is expected to thrive under their leadership in Tempe, where they employ approximately 17 people.
California PPE Recon, Inc.
Established in 2022, California PPE is also a UL-certified service provider focused on the extensive California firefighting market. This company specializes in similar services as Arizona PPE, including advanced decontamination and rental services. Founded by Mike Glaze, an experienced firefighter, California PPE aims to implement comprehensive NFPA 1851 maintenance programs across the state. With about 16 employees, California PPE is based in Riverside and will continue to flourish under Glaze’s leadership.
Leadership Comments on the Acquisition
Jim Jenkins, President and CEO of Lakeland, expressed his enthusiasm about welcoming both Arizona and California PPE into the Lakeland family. He stated, "We are thrilled to enhance our fire service offerings in the U.S. and broaden our global reach through these strategic acquisitions, adding significant value and expertise to our operations. We believe these additions will be pivotal in our growth strategy within the North American advanced decontamination and rental markets."
Growth Potential and Future Plans
With these acquisitions, Lakeland aims to capitalize on the synergies between its existing operations and the new entities. The collaboration between Arizona PPE, California PPE, and Lakeland's currently acquired subsidiary Veridian is expected to offer a robust platform for growth in the North American service segment of fire protection. Additionally, utilizing the strength of both new companies will enable Lakeland to advance cleaning, inspection, and rental services in this critical market.
About Lakeland Fire + Safety
Lakeland Fire + Safety is renowned for manufacturing a vast range of protective clothing and accessories tailored for industrial and first responder applications. Its products reach a diverse customer base globally, through dedicated sales teams and authorized distributors. Their clientele spans numerous sectors, including healthcare, industrial safety, and government agencies, ensuring comprehensive protection for professionals in hazardous conditions.
Contact Information
For more details about Lakeland or its recent acquisitions, please contact:
Lakeland Fire + Safety
256-600-1390
Roger Shannon
Chief Financial Officer
rdshannon@lakeland.com
Frequently Asked Questions
What companies did Lakeland Fire + Safety acquire?
Lakeland Fire + Safety acquired Arizona PPE Recon, Inc. and California PPE Recon, Inc.
What is the total value of the acquisitions?
The total value of the acquisitions is approximately $9.5 million.
What services do Arizona and California PPE offer?
Both companies provide cleaning, inspection, repair services, and rental of firefighting protective equipment.
Who are the founders of Arizona PPE?
Arizona PPE was founded by Scott and DeAnna Petersen in 2016.
What impact will the acquisitions have on Lakeland's business?
The acquisitions are expected to generate approximately $5 million in annual recurring revenue and enhance Lakeland's service offerings in the U.S.
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