Protective apparel maker Lakeland announces secondary offer pricing, shares tumble again
Shares of Lakeland Industries, a manufacturer of protective clothing, slid almost 11% on Thursday, January 23, following the company’s announcement of the pricing for a planned secondary offering. It will sell 1.82 million new shares to investors at $22 apiece — the lowest price for its shares since late November.
Details
Lakeland stock fell about 11% on the Nasdaq yesterday to close at $22.80 per share, with the losses continuing in late trading. The slide has stopped in premarket trading this morning, however, as Lakeland has gained 2.2% as of this writing.
On Wednesday, Lakeland announced a secondary offering, which triggered the initial decline. Shares plunged 15% that day. Yesterday, the company disclosed the terms of the deal: It plans to sell 1.82 million new shares at $22 each, with the underwriters receiving an option for an additional 273,000 shares.
The $22 per share pricing represents a 3% discount to the closing price yesterday and a nearly 18% discount to the $27 per share close on Tuesday, the day before the offering was announced.
According to the filing with the U.S. SEC, Lakeland Industries currently has 7.4 million shares outstanding (excluding those issued for accounting purposes and employee incentives). Following the offering, and assuming the underwriters exercise their option, the total number of shares will increase 20% to over 9.4 million shares.
Lakeland expects to raise approximately $40 million before expenses. The proceeds will be used to repay debt and fund operations and the growth of its business, including working capital and other general corporate purposes, the company stated.
About Lakeland Industries
Lakeland manufactures and sells protective clothing and accessories for industrial companies and first responders in more than 50 countries. Its customers include firms in the oil, chemical, automotive, and transportation industries, as well as fire and rescue services, law enforcement agencies, the U.S. Department of Defense, and disease control centers.
For the fiscal-2025 third quarter (ended October 31), Lakeland’s net revenue rose 44.5% year over year to $45.8 million, while total debt stood at $31.0 million.
The company’s expenses and debt have grown due to acquisitions, according to Simply Wall St. In 2024 alone, Lakeland completed three deals totaling approximately $50.6 million. Last February, it acquired Jolly, a manufacturer of footwear for firefighters, the military, and police, for $9.3 million. In the summer, it purchased German peer LHD Group Deutschland and its subsidiaries in Hong Kong and Australia for approximately $16.3 million. Finally, in December, Lakeland acquired Veridian, a maker of firefighter protective apparel, for around $25 million.
According to MarketWatch, Lakeland has two “buy” ratings from analysts. Their average target price is $28 per share, indicating upside of nearly 23%.
