- Oops!Something went wrong.Please try again later.
NEW YORK, April 26, 2021 (GLOBE NEWSWIRE) -- 1847 Holdings LLC (OTCQB: EFSH) (the “Company”), 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, is pleased to announce the completed sale of its majority interest in 1847 Neese Inc. (“Neese”), originally acquired in 2017 through a lender and seller financed transaction.
“I would like to thank Alan and Kate Neese for their tireless work during the tenure of our majority ownership of Neese,” commented Ellery W. Roberts, CEO of 1847 Holdings. “Although Neese and the agricultural services industry in the United States has faced several obstacles, since our acquisition of Neese in March 2017, I am very proud of the work our team has done in partnership with Alan and Kate, and our lenders Utica LeaseCo, LLC and Home State Bank. In reaching the decision to sell our 55% stake in Neese to the founders of Neese for $325,000, we benefit in one obvious and several less obvious ways. First, given that we acquired our majority interest in Neese without investing any equity, the internal rate of return and multiple of investment are incalculable. Second, by shedding our controlling interest in Neese, we are able to repurpose our resources to focus on opportunities with the potential for high absolute returns available to us through our other operating subsidiaries, 1847 Asien, 1847 Cabinet, 1847 Wolo, and the pending addition of the companies such as those likely to be acquired by our subsidiary, 1847 Hydroponic. Lastly, one of our 2021 goals is to up-list to a national exchange, and this transaction brings us within a stone’s throw of meeting the listing standards for a national securities exchange.
As result of the sale of our interest in Neese, our pro forma 2020 shareholders’ equity is expected to increase by approximately $3.4 million to approximately $6.7 million, resulting from cash proceeds of $0.3 million, the reduction of Neese assets of $3.8 million and Neese liabilities of $6.9 million on a proforma consolidated basis.
With these changes we believe the path is cleared for us to ascend to a national exchange in the near future.”
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 deploys resources to strengthen the infrastructure and systems 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)