Lakeland Industries acquires two PPE service companies for $9.5 million

HUNTSVILLE, Ala. - Lakeland Industries (NASDAQ:LAKE), whose stock has declined nearly 27% over the past six months according to InvestingPro data, announced Monday it has completed the acquisitions of Arizona PPE Recon and California PPE Recon for a combined $9.5 million, expanding its presence in the fire safety equipment maintenance market.

The acquisitions, which add approximately $5 million in annual recurring revenue, were structured with different payment terms. Arizona PPE was purchased for about $4 million in cash, while the $5.5 million California PPE transaction combined $3.4 million in Lakeland stock and $2.1 million in cash. Both deals include post-closing adjustments and holdback provisions. The company maintains a healthy balance sheet with a current ratio of 3.66x and operates with moderate debt levels, according to InvestingPro analysis.

Both acquired companies are UL-certified independent service providers that perform decontamination, inspection, and repairs on firefighting garments in compliance with NFPA 1851 guidelines. They also offer equipment rental, cleaning products, and related services.

Arizona PPE, established in 2016 and based in Tempe with 17 employees, serves fire departments throughout Arizona. Founders Scott and DeAnna Petersen will continue managing the business.

California PPE, founded in 2022 by firefighter Mike Glaze, operates in Riverside with 16 employees. Glaze will remain as president and has been appointed to expand Lakeland’s decontamination, repair, and rental services across the United States.

"These acquisitions expand Lakeland’s fire service offerings in the U.S. and beyond," said Jim Jenkins, Lakeland’s President, CEO and Executive Chairman, in the press release.

The protective clothing manufacturer stated it plans to leverage these acquisitions to grow its North American service segment by combining their expertise with Lakeland’s existing LHD service offerings in Asia and Australia.

Cherry Tree & Associates served as financial advisor to Lakeland for the transactions.

In other recent news, Lakeland Industries reported disappointing financial results for the second quarter of 2025. The company missed both earnings and revenue forecasts, posting an earnings per share (EPS) of $0.08 compared to the expected $0.2925, and generating revenue of $52.5 million against a forecast of $54.59 million. Additionally, DA Davidson lowered its price target for Lakeland Industries from $23.00 to $20.00, although it maintained a Buy rating for the company. This adjustment was attributed to tariff headwinds, despite Lakeland’s EBITDA exceeding consensus expectations.

In another development, Lakeland Industries secured a significant contract with the Hong Kong Fire Services Department. The contract, valued at approximately $5.6 million, involves providing decontamination and maintenance services for firefighter protective gear over a three-year period. This agreement highlights Lakeland’s ongoing efforts to expand its service offerings globally. These recent developments reflect a mix of challenges and opportunities for the company.

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