1847 Provides Reports Continued Progress on Pending Strategic Transactions

Rhea-AI Summary

1847 Holdings (NYSE American: EFSH) has provided an update on its strategic initiatives. The company is close to finalizing a deal to acquire a millwork, cabinetry, and door manufacturer with 2023 revenues of $28.6 million for $16.75 million, which is approximately 3.2x the target's EBITDA. The company is also in advanced discussions to sell one of its business lines and is restructuring its debt to extend repayment duration and remove equity-linked repayment aspects. These actions aim to create a favorable capital structure and long-term value for shareholders. Further updates will follow as these transactions progress.

Positive

• Nearing completion of a definitive agreement to acquire a manufacturer with $28.6 million in 2023 revenues.
• Acquisition price of $16.75 million represents approximately 3.2x the target's EBITDA.
• Engaged in active discussions to sell one of its business lines.
• Restructuring debt to extend repayment duration and eliminate equity-linked repayment aspects.

Negative

• No immediate financial gains or specifics on how the acquisition will impact short-term revenue.
• Ongoing debt restructuring indicates potential liquidity or financial management challenges.

News Market Reaction

-36.31%

1 alert

-36.31% News Effect

On the day this news was published, EFSH declined 36.31%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, NY / ACCESSWIRE / June 10, 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 provided an update on its ongoing business activities and strategic initiatives.

Ellery W. Roberts, CEO of 1847 Holdings, commented, "We remain on track with several potentially transformative strategic transactions. Specifically, we are nearing completion of a definitive agreement to acquire a prominent millwork, cabinetry, and door manufacturer. This target achieved revenues of $28.6 million and significant cash flow in 2023. Moreover, as previously disclosed, we negotiated a favorable purchase price of $16.75 million, which represents approximately 3.2x the target's 2023 EBITDA. We are also engaged in active discussions with several parties interested in acquiring one of our business lines and we are encouraged by the progress. In parallel, we are actively working on restructuring and accelerating the repayment of our debt. This includes extending the duration of remaining indebtedness and eliminating any equity-linked aspects of repayment. We believe these actions would create a more favorable capital structure for the Company and our shareholders, positioning us for sustained long-term success. We are highly confident that these and other strategic initiatives will drive significant value for our shareholders as we continue to execute our growth strategy. We look forward to providing further updates as these transactions continue to progress," concluded Mr. Roberts.

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.

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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 strategic transactions is 1847 Holdings (EFSH) planning?

1847 Holdings is nearing the completion of an acquisition of a manufacturer and is in advanced discussions to sell one of its business lines.

How much is 1847 Holdings paying for the new acquisition?

1847 Holdings is paying $16.75 million for the millwork, cabinetry, and door manufacturer.

What were the 2023 revenues of the company 1847 Holdings is acquiring?

The target company had revenues of $28.6 million in 2023.

What is the EBITDA multiple for the acquisition by 1847 Holdings?

The acquisition price represents approximately 3.2x the target's 2023 EBITDA.

What is 1847 Holdings doing to restructure its debt?

1847 Holdings is working on extending the duration of its remaining indebtedness and eliminating equity-linked repayment aspects.