1847 Holdings Signs Definitive Agreement to Purchase Commercial Cabinet, Door & Millwork Manufacturer with Unaudited Trailing Twelve-Month (TTM) Net Income of $10.4 Million

Rhea-AI Summary

1847 Holdings (NYSE American: EFSH) has signed a definitive agreement to acquire a Las Vegas-based millwork, cabinetry, and door manufacturer for approximately $18.75 million. The target company reported unaudited revenue of $33.1 million and net income of $10.4 million for the TTM ended September 30, 2024. The acquisition is expected to close by December 3, 2024. This follows 1847's recent $11.1 million public offering and $4.2 million debt reduction from the ICU Eyewear sale. The company expects this acquisition to enhance profitability and cash flow significantly.

Positive

• Target company shows strong profitability with $10.4M net income on $33.1M revenue (TTM)
• Purchase price of $18.75M represents only 1.8x TTM net income
• Company reduced $4.2M of debt through ICU Eyewear sale
• Successfully raised $11.1M through public offering to strengthen balance sheet

Negative

• Recent public offering likely caused shareholder dilution

Purchase price for this transaction is approximately $18.75 million

NEW YORK, NY / ACCESSWIRE / November 6, 2024 / 1847 Holdings LLC ("1847" or the "Company") (NYSE American:EFSH), a holding company specializing in identifying over-looked, deep value investment opportunities in middle market businesses, today announced it has executed a definitive agreement to acquire the previously announced millwork, cabinetry, and door manufacturer based in Las Vegas, Nevada (the "Target").

The Target reported unaudited revenue of $29.4 million and approximately $5.7 million in net income for the year ended December 31, 2023. The Target also reported unaudited revenue of $33.1 million and net income of $10.4 million for the trailing twelve months ended September 30, 2024. The purchase price for this transaction is approximately $18.75 million, and the acquisition is expected to close on or before December 3, 2024.

Ellery Roberts, CEO of 1847 Holdings, commented: "This acquisition marks a major turning point for 1847. It aligns perfectly with our criteria for a target company, with strong historical revenue growth and profitability, whereby we believe we can leverage our holding company model and management expertise to further accelerate its growth. With the recent completion of our $11.1 million public offering, as well as the elimination of $4.2 million of debt from the sale of ICU Eyewear, we have significantly enhanced our balance sheet. Moving forward, we anticipate this acquisition will greatly enhance our profitability and contribute significant cash flow, eliminating the need to raise capital for the foreseeable future and creating a foundation to drive long-term value for shareholders."

Senior Mergers & Acquisitions Advisor Tim Canale with Sunbelt Business Advisors was the exclusive advisor to the Seller for this transaction.

About 1847 Holdings LLC
1847 Holdings LLC (NYSE American:EFSH), a publicly traded diversified acquisition holding company, was founded by Ellery W. Roberts, a former partner of Parallel Investment Partners, Saunders Karp & Megrue, and Principal of Lazard Freres Strategic Realty Investors. 1847 Holdings' investment thesis is that capital market inefficiencies have left the founders and/or stakeholders of many small business enterprises or lower-middle market businesses with limited exit options despite the intrinsic value of their business. Given this dynamic, 1847 Holdings can consistently acquire businesses it views as "solid" for reasonable multiples of cash flow and then deploy resources to strengthen the infrastructure and systems of those businesses in order to improve operations. These improvements may lead to a sale or IPO of an operating subsidiary at higher valuations than the purchase price and/or alternatively, an operating subsidiary may be held in perpetuity and contribute to 1847 Holdings' ability to pay regular and special dividends to shareholders.For more information, visit www.1847holdings.com.

For the latest insights, follow 1847 on Twitter.

Forward-Looking Statements
This press release may contain information about 1847 Holdings' view of its future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on our management's beliefs, assumptions and expectations of our future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause our actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include but are not limited to the risks set forth in "Risk Factors" included in our SEC filings.

CONTACT:
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: EFSH@crescendo-ir.com

SOURCE: 1847 Holdings LLC

View the original press release on accesswire.com

FAQ

What is the purchase price for 1847 Holdings' (EFSH) latest acquisition?

1847 Holdings (EFSH) is acquiring the Las Vegas-based manufacturer for approximately $18.75 million.

What are the target company's TTM revenue and net income as of September 2024?

The target company reported unaudited TTM revenue of $33.1 million and net income of $10.4 million as of September 30, 2024.

When is the expected closing date for EFSH's acquisition of the Las Vegas manufacturer?

The acquisition is expected to close on or before December 3, 2024.

How much did 1847 Holdings (EFSH) raise in their recent public offering?

1847 Holdings (EFSH) completed an $11.1 million public offering.