1847 Provides Sale Status Update on a Division of 1847 Cabinets Inc.
Rhea-AI Summary
1847 Holdings (NYSE American: EFSH) has provided an update on the proposed sale of a division of 1847 Cabinets Inc. The financing contingency from the Letter of Intent has been removed, and the transaction is expected to close by mid-September 2024. This strategic move aims to improve 1847's financial position and allow for resource reallocation.
CEO Ellery W. Roberts highlighted that this sale demonstrates the company's ability to acquire, operate, and enhance asset value before selling. Additionally, 1847 is close to finalizing a definitive agreement to acquire a leading millwork, cabinetry, and door manufacturer that generated $28.6 million in revenue in 2023. The company is also in discussions to sell another business line, reflecting its broader strategy to optimize asset allocation and enhance shareholder returns.
Positive
- Financing contingency removed from the Letter of Intent for the sale of a division of 1847 Cabinets Inc.
- Expected closing of the transaction by mid-September 2024
- Potential acquisition of a leading millwork, cabinetry, and door manufacturer with $28.6 million revenue in 2023
- Ongoing discussions to sell another business line
Negative
- None.
News Market Reaction
On the day this news was published, EFSH gained 6.96%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
NEW YORK, NY / ACCESSWIRE / July 31, 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 the status of the proposed sale of a division of 1847 Cabinets Inc.
Mr. Ellery W. Roberts, CEO of 1847 Holdings, commented, "We are making progress on the sale of a division of 1847 Cabinets. The financing contingency from the Letter of Intent was recently removed and we anticipate closing the transaction by mid-September 2024. This sale is a key strategic move for 1847, demonstrating our ability to acquire, operate, and enhance the value of assets before selling them. This will notably improve our financial position, allowing us to reallocate resources strategically and capitalize on emerging opportunities within and beyond our portfolio, with a long-term focus on maximizing shareholder value."
"This is just one part of our broader strategy to optimize asset allocation and enhance overall shareholder returns. The proposed transaction underscores our belief that the Company is significantly undervalued compared to the intrinsic value of our portfolio companies. We are on track with several potentially transformative strategic transactions. Specifically, we are close to finalizing a definitive agreement to acquire a leading millwork, cabinetry, and door manufacturer, which generated
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.
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
When is the expected closing date for the sale of 1847 Cabinets Inc. division?
What is the revenue of the potential acquisition target for EFSH?
What strategic moves is 1847 Holdings (EFSH) making to enhance shareholder value?
Has the financing contingency been removed from the Letter of Intent for EFSH's proposed sale?
