Titan Environmental Services to be Acquired by Windtree Therapeutics for Bridge Financing.

Windtree Therapeutics, Inc. is considering acquiring Titan Environmental Services, Inc. for an undisclosed sum. The terms of the acquisition are outlined in Exhibit A. Windtree has agreed to provide bridge financing to Titan Environmental Services as part of the deal. The acquisition is subject to completion of due diligence and other conditions.

Windtree Therapeutics, Inc. (NasdaqCM: WINT), a diversified company focused on revenue generation in multiple growing industries, has announced its intention to acquire Titan Environmental Services, Inc. (OTC: TESI), a waste management business with operations in Michigan. The acquisition, which is subject to completion of due diligence and other conditions, aims to bolster Windtree's financial performance and expand its revenue streams.

As part of the deal, Windtree will issue preferred shares and has secured debt financing to fund the transaction and working capital for the business. The acquisition is expected to close in the third quarter. In the event an agreement cannot be consummated, Windtree is entitled to an $8.0 million breakup fee [1].

The United States waste collection market, valued at $85 billion in 2024, has historically generated attractive EBITDA margins and free cash flow. Windtree believes the fragmented waste management market presents an opportunity for scaling the business and providing additional top-line revenue growth and positive EBITDA contributions through additional acquisitions [1].

Windtree Environmental Services, the subsidiary that will result from the acquisition, will immediately begin the implementation and execution of a roll-up strategy to capitalize on this opportunity. This strategy aligns with Windtree's refined corporate strategy, which focuses on diversifying its business model by increasing revenue and providing significant growth potential [1].

Under this strategy, Windtree continues to evaluate options for its drug candidate pipeline in an effort to reduce costs and increase overall profitability. The acquisition of Titan Environmental Services is expected to generate $12 million in revenue over the next 12 months [1].

References:
[1] https://www.biospace.com/press-releases/windtree-announces-transformational-agreement-to-acquire-revenue-generating-environmental-services-business
[2] https://finance.yahoo.com/news/windtree-announces-transformational-agreement-acquire-120000063.html