Applied UV’s Subsidiary has Purchased the Continuing Business and a Multi-Year Exclusive Global Licensing Agreement With Element Designs
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The acquisition of Element Designs by MunnWorks, a subsidiary of Applied UV, signifies a strategic expansion into the design and fabrication of public metal systems. This move could potentially open up new revenue streams for MunnWorks, leveraging Element Designs' established reputation in the industry. The historical annual revenue of Element Designs, ranging between $3 million and $5 million, suggests a stable business foundation that MunnWorks can build upon.
By integrating Element Designs' manufacturing capabilities into MunnWorks' existing facilities, the company anticipates achieving economies of scale and reducing marginal costs. This integration is expected to be immediately accretive to margins, indicating a positive financial impact without significant increases in overhead. The anticipated use of MunnWorks' sales, marketing and global distribution networks to grow revenues could lead to market expansion and increased market share, particularly in the smart building technology sector.
However, the success of this venture will depend on the effective integration of Element Designs' product lines with MunnWorks' smart building technologies and the ability to innovate and differentiate in a competitive landscape. The synergies between the two companies' product offerings, particularly in energy-efficient and visually enhanced outdoor systems, could provide a competitive edge and appeal to environmentally conscious clients.
The licensing agreement and acquisition of Element Designs by MunnWorks, under Applied UV, is structured with a revenue-sharing model, where MunnWorks agrees to pay 10% of net realized revenues from the acquired business. This type of deal structure minimizes upfront costs and aligns Element Designs' future performance with MunnWorks' financial interests.
The absence of equity payment or debt assumption in the purchase agreement is a conservative financial approach that could appeal to investors wary of leverage-induced risks. This strategy could also preserve capital for MunnWorks and Applied UV for other strategic initiatives or to cushion against potential market downturns.
Investors and stakeholders should monitor the post-acquisition performance closely, as the projected significant increase in revenues post-transaction will be a critical measure of the acquisition's success. The forecasted growth and the ability to maintain or improve profit margins will be essential indicators of the financial health and potential long-term benefits of this acquisition.
The integration of smart building technologies from MunnWorks and SteriLumen into Element Designs' products could enhance the sustainability profile of the offerings. The focus on minimizing energy usage and maximizing visual effects via decorative lighting and compressed air systems aligns with the growing demand for green and energy-efficient infrastructure.
Public space projects, like those undertaken by Element Designs, are increasingly evaluated on environmental impact. The collaboration's ability to deliver energy-efficient and aesthetically pleasing installations could position the company favorably in bids for environmentally sensitive projects and public tenders.
It will be crucial for MunnWorks to effectively communicate the sustainability benefits of its enhanced product range to stakeholders and the broader market to capitalize on this competitive advantage. The company's ability to quantify and demonstrate the return on investment (ROI) for property owners through energy savings and increased property value will be key to justifying potentially higher upfront costs associated with these technologies.
- Element Designs is a well-established designer and fabricator of large scale and public metal systems such as custom water cascades and fountains, outdoor monumental furnishings, and public green-walls.
- MunnWorks expects to integrate Element Designs manufacturing into its hospitality case goods and furnishings business utilizing MunnWorks’ domestic 100,000 sq. ft. facility [including its metal fabrication technology] and grow revenues by leveraging its sales, marketing and global distribution network without a meaningful increase in overhead or administrative cost.
- MunnWorks has acquired the continuing future sales “the business” and the related rights, exclusively, by agreeing to pay
10% of net realized revenues arising from this purchase. There is no equity payment or debt assumed in this purchase agreement. - The Licensor has represented to MunnWorks that the annual revenues since 2017 has ranged between
$3 million and$5 million annually. Given the increase in resources now available to Element Designs from MunnWorks [ such as MunnWorks current national sales organization and its extensive customer base] MunnWorks believes that Element Designs post transaction revenues could significantly increase. - By incorporating and consolidating the new sales and manufacturing within MunnWorks existing overhead and facility, the positive contributing margins will be immediately accretive.
NEW YORK, NY, Feb. 29, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire –Applied UV, Inc. (“Applied UV” or the “Company”) (Nasdaq: AUVI), a leader in smart building technology solutions, today announced that its subsidiary, MunnWorks, has entered into a multi-year exclusive global licensing agreement with the purchase of the continuing business of Element Designs Collaborative (“Element Designs”), an established designer and fabricator of custom outdoor systems for commercial and public space property owners. The three-year agreement, which may be extended, is exclusive for the design, production and distribution of Element Design water Feature and fountains, landscape systems, monumental outdoor furnishings, and green-walls. The founding team of Element Designs will join MunnWorks.
Founded over 10 years ago, Element Designs services commercial and public clients and has been involved with many notable projects, such as the World Trade Center Memorial, Lincoln Center, and JFK Airport, as well as projects throughout the U.S. and internationally. Applied UV’s subsidiaries, MunnWorks and SteriLumen, intend to incorporate their respective Smart Buildings technology, such as decorative lighting and compressed air into Element Design’s systems in order to minimize energy usage and maximize the visual effects to further enhance the experience of the public and thereby enhance the value of the property maximizing the ROI for ownership.
The key product areas MunnWorks and Design Elements plan to collaborate on include the following:
• Water Features (streamlined water and lighting designs, wall and plaza fountains, introduce large scale fountains for interior use, such as was recently installed at Dubai International Airport)
• Monumental Landscape Furnishings (pergolas, privacy screens, and very large outdoor metal
furnishings)
• Preserved Green-walls (Preserved natural foliage set within a moss wall system)
• Outdoor interactive systems for public spaces
“We are thrilled to announce this partnership with Element Designs. For more than 10 years, Element Designs has provided creative, elegant design enhancements for commercial and public properties across the globe. Together we look forward to bringing the same beautiful custom furnishings and exquisite details, while incorporating many of our innovative Smart Building technologies, to elevate outdoor space throughout the U.S. and globally," said Max Munn, CEO of Applied UV Inc.
Munn added, “As industry leaders in high-end case goods and furnishings, and a reputation for delivering high-quality products, MunnWorks is strategically positioned to support and grow this business by leveraging our significant manufacturing facility in the U.S., along with our extensive sales, marketing and distribution reach in numerous verticals. We feel there is tremendous runway for growth and we’re confident this will be a successful venture.”
Privately held, Element Design, expects its revenues to grow dramatically in the next three years. For more information about Element Design, please visit https://www.elementdesigns.art
About Applied UV
Applied UV Inc. is dedicated to developing and acquiring smart building technologies for healthcare, hospitality, commercial and municipal markets. With SteriLumen, MunnWorks, LED Supply Co., and PURO, the company has a diverse portfolio that addresses various needs in the market. Applied UV Inc. is committed to innovation and excellence in providing solutions for a healthier and smarter world. More details about Applied UV, Inc., and its subsidiaries can be found at https://applieduvinc.com
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For Additional Company Information:
Applied UV, Inc.
Max Munn
Applied UV Founder, CEO & Director
Max.munn@applieduvinc.com
Investor Relations Contact:
TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com
FAQ
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