CEA Industries Inc. (CEAD) announced on Tuesday its intention to acquire a leading specialty retailer and manufacturer through a non-binding Letter of Intent. The deal will be financed using a mix of cash, the company's shares, and debt. The target company boasts over 30 retail locations across a wide geographic region, and holds an extensive portfolio of trademarks and intellectual property.
Following the acquisition, CEA plans to enhance the target company's retail presence by acquiring additional outlets and opening new locations, while also expanding its manufacturing operations for house brand and private label products.
Based in Louisville, CEA aims to finalize a definitive agreement by year-end, with the transaction expected to close in the first quarter of 2025. Currently, CEA's stock is priced at $6.50, reflecting a 4.67% increase on the Nasdaq.