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1847 Holdings expects holding company EBITDA to increase to more than $7M
Company expects latest transactions will allow it to begin regular quarterly common stock dividend payments
NEW YORK, Oct. 11, 2021 (GLOBE NEWSWIRE) -- 1847 Holdings LLC (OTCQB: EFSH) ( “1847 Holdings”), a publicly traded holding company platform that combines the attractive attributes of private, lower--middle market businesses with the liquidity and transparency of a publicly traded company, today announced the closing of two acquisitions, High Mountain Door & Trim Inc. and Sierra Homes, LLC (the “Companies”), expanding 1847 Holdings’ 1847 Cabinet Inc. (“1847 Cabinet”) subsidiary’s footprint to Northern Nevada and the greater Lake Tahoe area. The addition of the Companies to 1847 Holdings’ portfolio is expected to drive holding company EBITDA to more than $7 million.
“These acquisitions and the associated financing place 1847 Holdings on the path to begin paying quarterly dividends to our common shareholders this quarter,” commented Ellery W. Roberts, CEO of 1847 Holdings. “The expansion of our 1847 Cabinet subsidiary builds on the success already generated by Kyle’s Custom Wood Shop (“KWCS”) CEO Ken Yuan and his team, who generated record quarterly billings in the first full quarter of 1847 Holdings ownership of KWCS. These transactions also provide a great demonstration of our buy and build strategy.”
“The addition of the Companies increases 1847 Cabinet’s revenue to approximately $32 million with $4.5 million EBITDA for the trailing 12-months ended June 30, 2021,” added Yuan. “We believe our significantly larger operating base can serve as a platform from which we continue building a regionally dominant provider of cabinets to homebuilders in the Southwest, West and Pacific Northwest.”
The Companies were purchased through a combination of cash, partial proceeds from a $24.86 million senior secured convertible promissory note, and subordinated seller promissory notes.
About 1847 Holdings LLC
1847 Holdings LLC (OTCQB: 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.
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.
Ellery W. Roberts, Founder & CEO
1847 Holdings LLC
Dave Gentry, CEO
Office: 1.800.RED.CHIP (733.2447)