urban-gro Acquires Texas-Based Engineering Firm, DVO, Inc. For $6.1M

Urban-gro Engineering, Inc, a subsidiary of urban-gro, Inc. UGRO, has completed acquisition of substantially all of the assets of Dawson Van Orden, Inc. (“DVO”), a world-class Texas-based engineering firm with significant experience in indoor CEA, effective November 1, 2022.

Bradley Nattrass, chairman and CEO of urban-gro, commented, “DVO provides several levers for growth, including cross-selling benefits, enhanced margin capture, and an expansion of our professional services offering. The added engineering depth is particularly valuable at a time when we are seeing strong demand for both our professional services, and our turnkey design-build offering. We look forward to DVO’s contributions as we work together to expand our CEA footprint.”

urban-gro paid a final purchase price of $6.1 million after working capital adjustments, excluding $1.1 million of contingent consideration that may become payable in cash or equity at company’s discretion, through a combination of $1.2 million in cash, $3.8 million of a seller’s note paid out over four quarters, and $1.1 million of UGRO common stock at a pre-set price of $4 per share, equivalent to 271,875 shares. DVO generated approximately $5.5 million of revenue and greater than 20% EBITDA margins in the trailing twelve-month period ended September 30, 2022.

Jason Dawson, formerly the president of DVO and now urban-gro's executive vice president of engineering commented, “urban-gro is an incredible company with a vision and trajectory that my partners and I wanted to join. My team – including mechanical, electrical, plumbing, and fire & safety engineers, as well as an industrial architecture team that was formerly at AECOM – are excited to continue to integrate into projects and be a part of a much larger team and company that is rapidly scaling to meet demand. As we have already been working on joint opportunities in both the CEA and Industrial sectors, I’m confident that we will assimilate quickly and be able to take advantage of the immense opportunities in front of us.”

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