US (CO): CEA Industries aiming to acquire "leading" specialty retailer

CEA Industries announced that it is under a non-binding Letter of Intent to acquire a leading specialty retailer and manufacturer which would be paid for with a combination of cash, CEA Industries common shares, and debt.

Tony McDonald, Chairman and CEO of CEA Industries said: "This proposed transaction offers an exciting opportunity for our shareholders to benefit from a growing and profitable business operating in a high-demand industry. The Target has a demonstrated track record of double-digit revenue growth, consistent profitability, and positive cash flow. Building on the Target's 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."

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's retail footprint through the acquisition of additional stores as well as opening de novo stores, enabling broader market reach and customer accessibility.