1847 Announces Sale of High Mountain Door & Trim, a Division of 1847 Cabinets, for More Than Double the Original Purchase Price
1847 Holdings (NYSE American:EFSH) has successfully sold High Mountain Door & Trim Inc. (HMDT), a division of 1847 Cabinets, to Builders FirstSource, Inc. for more than double the original purchase price. HMDT, founded in 2014 and based in Reno, Nevada, specializes in finished carpentry products and services. The sale includes HMDT's operating assets, subject to net working capital adjustment and other customary terms.
CEO Ellery W. Roberts stated that the proceeds will be used to strengthen 1847's financial position, pursue new growth initiatives, and potentially acquire other companies offering accretive value and positive cash flow. This transaction is part of 1847's strategy to optimize asset allocation and enhance shareholder returns, highlighting the gap between the company's market valuation and the intrinsic value of its portfolio companies.
1847 Holdings (NYSE American:EFSH) ha venduto con successo High Mountain Door & Trim Inc. (HMDT), una divisione di 1847 Cabinets, a Builders FirstSource, Inc. per più del doppio del prezzo di acquisto originale. HMDT, fondata nel 2014 e con sede a Reno, Nevada, è specializzata in prodotti e servizi di carpenteria finita. La vendita comprende gli attivi operativi di HMDT, soggetti a un aggiustamento del capitale circolante netto e ad altre condizioni consuete.
Il CEO Ellery W. Roberts ha dichiarato che i proventi verranno utilizzati per rafforzare la posizione finanziaria di 1847, perseguire nuove iniziative di crescita e potenzialmente acquisire altre aziende che offrono valore aggiunto e flusso di cassa positivo. Questa transazione è parte della strategia di 1847 per ottimizzare l'allocazione delle risorse e migliorare i rendimenti per gli azionisti, mettendo in evidenza il divario tra la valutazione di mercato dell'azienda e il valore intrinseco delle sue società in portafoglio.
1847 Holdings (NYSE American:EFSH) ha vendido con éxito High Mountain Door & Trim Inc. (HMDT), una división de 1847 Cabinets, a Builders FirstSource, Inc. por más del doble del precio de compra original. HMDT, fundada en 2014 y ubicada en Reno, Nevada, se especializa en productos y servicios de carpintería acabada. La venta incluye los activos operativos de HMDT, sujetos a un ajuste del capital de trabajo neto y a otros términos habituales.
El CEO Ellery W. Roberts declaró que los ingresos se utilizarán para fortalecer la posición financiera de 1847, perseguir nuevas iniciativas de crecimiento y potencialmente adquirir otras empresas que ofrezcan valor acumulativo y flujo de caja positivo. Esta transacción es parte de la estrategia de 1847 para optimizar la asignación de activos y mejorar los rendimientos para los accionistas, subrayando la brecha entre la valoración de mercado de la empresa y el valor intrínseco de sus empresas en cartera.
1847 Holdings (NYSE American:EFSH)는 High Mountain Door & Trim Inc. (HMDT), 1847 Cabinets의 한 사업 부문을 Builders FirstSource, Inc.에 원래 구매 가격의 두 배 이상에 성공적으로 판매했습니다. HMDT는 2014년에 설립되어 네바다주 리노에 본사를 두고 있으며, 완제품 목공 제품 및 서비스를 전문으로 합니다. 이번 매각에는 HMDT의 운영 자산이 포함되며, 순운전 자본 조정 및 기타 관례적인 조건이 적용됩니다.
CEO Ellery W. Roberts는 수익이 1847의 재무 상태를 강화하고, 새로운 성장 이니셔티브를 추구하며, 잠재적으로 다른 가치를 더하는 기업을 인수하는 데 사용될 것이라고 밝혔습니다. 이번 거래는 자산 배분을 최적화하고 주주 수익을 향상시키기 위한 1847의 전략의 일환이며, 회사의 시장 평가와 포트폴리오 회사의 본질적 가치 간의 차이를 강조합니다.
1847 Holdings (NYSE American:EFSH) a vendu avec succès High Mountain Door & Trim Inc. (HMDT), une division de 1847 Cabinets, à Builders FirstSource, Inc. pour plus de deux fois le prix d'achat initial. HMDT, fondée en 2014 et basée à Reno, dans le Nevada, se spécialise dans les produits et services de menuiserie finie. La vente comprend les actifs opérationnels de HMDT, sous réserve d'un ajustement du fonds de roulement net et d'autres conditions habituelles.
Le PDG Ellery W. Roberts a déclaré que le produit de la vente sera utilisé pour renforcer la position financière de 1847, poursuivre de nouvelles initiatives de croissance et potentiellement acquérir d'autres entreprises offrant une valeur ajoutée et un flux de trésorerie positif. Cette transaction fait partie de la stratégie de 1847 pour optimiser l'allocation des actifs et améliorer le rendement pour les actionnaires, mettant en évidence l'écart entre la valorisation boursière de l'entreprise et la valeur intrinsèque de ses sociétés en portefeuille.
1847 Holdings (NYSE American:EFSH) hat High Mountain Door & Trim Inc. (HMDT), eine Abteilung von 1847 Cabinets, erfolgreich an Builders FirstSource, Inc. für mehr als das Doppelte des ursprünglichen Kaufpreises verkauft. HMDT, 2014 gegründet und mit Sitz in Reno, Nevada, spezialisiert sich auf Fertigung von Tischlerprodukten und -dienstleistungen. Der Verkauf umfasst die Betriebsvermögen von HMDT, vorbehaltlich einer Anpassung des Nettoumlaufvermögens und anderer üblicher Bedingungen.
CEO Ellery W. Roberts erklärte, dass die Erlöse verwendet werden, um die finanzielle Position von 1847 zu stärken, neue Wachstumsinitiativen zu verfolgen und potenziell andere Unternehmen zu erwerben, die einen akzentuierten Wert und einen positiven Cashflow bieten. Diese Transaktion ist Teil der Strategie von 1847, die Vermögensallokation zu optimieren und den Aktionärsrenditen zu steigern, wobei die Kluft zwischen der Marktbewertung des Unternehmens und dem inneren Wert seiner Portfoliounternehmen hervorgehoben wird.
- Sale of HMDT for more than double the original purchase price
- Strengthening of financial position through sale proceeds
- Potential for new acquisitions and growth initiatives
- Demonstration of successful business model in acquiring, operating, and selling undervalued assets
- None.
Insights
The sale of High Mountain Door & Trim (HMDT) for more than double the original purchase price is a significant win for 1847 Holdings. This transaction demonstrates the company's ability to identify undervalued assets, improve their operations and sell them at a premium. The deal provides several key benefits:
- Immediate cash infusion, improving liquidity
- Validation of 1847's business model and strategy
- Potential for reinvestment in new opportunities
- Strengthened financial position
However, investors should note that the exact sale price and original purchase price were not disclosed, making it difficult to quantify the precise financial impact. The company's plan to use the proceeds for debt reduction, new acquisitions and other growth initiatives could lead to future value creation, but execution risks remain. The sale also highlights the potential undervaluation of 1847's other portfolio companies, which could indicate upside potential for the stock if the market reassesses the company's intrinsic value.
This transaction showcases 1847 Holdings' competence in the "buy, improve, sell" strategy typical of private equity firms. The sale to Builders FirstSource, a major player in the building products industry, likely indicates a strategic fit and potential synergies for the buyer. Key points to consider:
- The sale price exceeding double the purchase price suggests significant value creation during 1847's ownership
- The transaction structure, involving the sale of operating assets subject to working capital adjustments, is standard for this type of deal
- The buyer's profile as the largest U.S. supplier in its sector implies a strong market for HMDT's products and services
This successful exit could enhance 1847's reputation in the market, potentially attracting more deal flow and investment opportunities. However, the challenge now lies in redeploying the capital effectively to maintain growth momentum and continue delivering shareholder value. The company's ability to replicate this success with future acquisitions will be important for long-term performance.
NEW YORK, NY / ACCESSWIRE / October 1, 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 the successful sale of High Mountain Door & Trim Inc. ("HMDT"), a division of 1847 Cabinets, to Builders FirstSource, Inc., the largest U.S. supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling, for more than double the original purchase price.
Headquartered in Reno, Nevada, and founded in 2014, High Mountain specializes in all aspects of finished carpentry products and services. Under the terms of the purchase agreement, HMDT's operating assets were sold to Builders FirstSource, subject to a net working capital adjustment and other customary terms. 1847 expects to utilize a portion of the proceeds from the sale to continue its strategic mission of buying, operating and selling undervalued business.
Mr. Ellery W. Roberts, CEO of 1847 Holdings, commented, "This sale marks a strategic milestone for 1847, showcasing our ability to acquire, operate, and enhance the value of assets before selling them. The proceeds from this sale will be used to strengthen our financial position, pursue new growth initiatives, and potentially acquire other companies that offer accretive value and positive cash flow. This infusion of capital not only boosts our liquidity but also positions us to take advantage of new opportunities for value creation and expansion, ultimately benefiting our shareholders in the long run."
"This transaction is part of our broader strategy to optimize asset allocation and enhance overall shareholder returns. It also highlights the significant gap between the market valuation of 1847 and the intrinsic value of our portfolio companies. We believe this further underscores the compelling investment opportunity presented by 1847," 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 www.1847holdings.com.
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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.
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SOURCE: 1847 Holdings LLC
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