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

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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.

1847 Holdings (NYSE American: EFSH) ha firmato un accordo definitivo per acquisire un produttore di opere in legno, mobili e porte con sede a Las Vegas per un importo di circa 18,75 milioni di dollari. L'azienda target ha riportato ricavi non verificati di 33,1 milioni di dollari e un reddito netto di 10,4 milioni di dollari per il TTM terminato il 30 settembre 2024. Si prevede che l'acquisizione si concluda entro il 3 dicembre 2024. Questo segue l'offerta pubblica di 11,1 milioni di dollari recentemente effettuata da 1847 e la riduzione del debito di 4,2 milioni di dollari derivante dalla vendita di ICU Eyewear. L'azienda si aspetta che questa acquisizione migliorerà significativamente la redditività e il flusso di cassa.

1847 Holdings (NYSE American: EFSH) ha firmado un acuerdo definitivo para adquirir un fabricante de carpintería, muebles y puertas con sede en Las Vegas por aproximadamente 18,75 millones de dólares. La empresa objetivo reportó ingresos no auditados de 33,1 millones de dólares y un ingreso neto de 10,4 millones de dólares para el TTM finalizado el 30 de septiembre de 2024. Se espera que la adquisición se cierre antes del 3 de diciembre de 2024. Esto sigue a la reciente oferta pública de 11,1 millones de dólares y la reducción de deuda de 4,2 millones de dólares por la venta de ICU Eyewear. La empresa espera que esta adquisición mejore significativamente la rentabilidad y el flujo de efectivo.

1847 홀딩스 (NYSE American: EFSH)는 약 1,875만 달러에 라스베가스에 본사를 둔 목공, 가구 및 문 제조업체를 인수하는 최종 계약을 체결했습니다. 인수 대상 업체는 2024년 9월 30일 종료된 12개월기간(TTM)동안 감사받지 않은 수익 3,310만 달러 및 순이익 1,040만 달러를 보고했습니다. 이번 인수는 2024년 12월 3일 이전에 마무리될 것으로 예상됩니다. 이는 1847의 최근 1,110만 달러 공개 발행 및 ICU Eyewear 판매로 인한 420만 달러 부채 감소 이후입니다. 회사는 이번 인수가 수익성 및 현금 흐름을 크게 향상시키기를 기대하고 있습니다.

1847 Holdings (NYSE American: EFSH) a signé un accord définitif pour acquérir un fabricant de menuiserie, de meubles et de portes basé à Las Vegas pour environ 18,75 millions de dollars. L'entreprise cible a déclaré des revenus non audités de 33,1 millions de dollars et un revenu net de 10,4 millions de dollars pour les TTM se terminant le 30 septembre 2024. La clôture de l'acquisition est prévue d'ici le 3 décembre 2024. Cela fait suite à l'offre publique récente de 11,1 millions de dollars et à une réduction de la dette de 4,2 millions de dollars résultant de la vente d'ICU Eyewear. L'entreprise s'attend à ce que cette acquisition améliore considérablement sa rentabilité et son flux de trésorerie.

1847 Holdings (NYSE American: EFSH) hat einen endgültigen Vertrag unterzeichnet, um einen in Las Vegas ansässigen Hersteller von Holzarbeiten, Möbeln und Türen für etwa 18,75 Millionen Dollar zu erwerben. Das Zielunternehmen berichtete von ungeprüften Einnahmen in Höhe von 33,1 Millionen Dollar und einem Nettogewinn von 10,4 Millionen Dollar für die 12 Monate bis zum 30. September 2024. Der Abschluss der Akquisition wird bis zum 3. Dezember 2024 erwartet. Dies folgt auf das kürzliche öffentliche Angebot über 11,1 Millionen Dollar und die Reduzierung der Schulden um 4,2 Millionen Dollar aus dem Verkauf von ICU Eyewear. Das Unternehmen erwartet, dass diese Akquisition die Rentabilität und den Cashflow erheblich verbessern wird.

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

Insights

This acquisition represents a significant strategic move for 1847 Holdings. The $18.75 million purchase price appears reasonable at approximately 1.8x TTM net income of $10.4 million, suggesting a potentially value-accretive deal. The target's strong profitability metrics, with a 31.4% net margin on TTM revenue of $33.1 million, indicate robust operational efficiency.

The transaction's funding structure, supported by the recent $11.1 million public offering and $4.2 million debt reduction from the ICU Eyewear sale, strengthens 1847's financial position. The company's statement about eliminating future capital raising needs suggests confidence in the target's cash flow generation potential. This acquisition could mark a turning point for EFSH, potentially transforming it from a cash-consuming to a cash-generating entity.

The commercial millwork and cabinet manufacturing sector presents strong fundamentals, particularly in Las Vegas's growing commercial construction market. The target's revenue growth from $29.4 million in 2023 to a TTM of $33.1 million demonstrates market share expansion and effective execution. The 12.6% year-over-year revenue growth, coupled with an impressive 82.5% increase in net income, indicates both market opportunity and operational leverage.

For a micro-cap company with a market cap of just $207,000, acquiring a business generating $10.4 million in annual net income could be transformative. However, investors should monitor integration execution and working capital management post-acquisition.

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.

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