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1847 Executes Letter of Intent to Sell 1847 Cabinets Inc. for $27.6 Million

NEW YORK, NY / ACCESSWIRE / April 23, 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 execution of a non-binding Letter of Intent ("LOI") with a prospective strategic buyer to sell all assets of 1847 Cabinets Inc.

Under the terms of the LOI, the buyer has proposed an enterprise value of $27.6 million for the acquisition of all assets of 1847 Cabinets Inc., representing a 5.91x multiple of 2023 EBITDA of approximately $4.7 million. The proposed acquisition deal is subject to the negotiation and entry into a definitive purchase agreement and the satisfaction or waiver of customary closing conditions.

Mr. Ellery W. Roberts, CEO of 1847 Holdings, commented, "The decision to sell 1847 Cabinets Inc. stems from our commitment to maximizing shareholder value and strategically reallocating resources to capitalize on emerging opportunities within our portfolio. While the sale represents a significant milestone, it is just one facet of our broader strategy aimed at optimizing our asset allocation and enhancing overall shareholder returns. The proceeds from the sale will be strategically deployed to further strengthen our financial position, pursue growth initiatives, and potentially acquiring other companies that offer accretive value and positive cash flow. This infusion of capital not only provides liquidity but also positions us to seize new opportunities for value creation and expansion, ultimately benefiting our shareholders in the long run."

"Moreover, this proposed transaction underscores just how massively undervalued the company is relative to the sale's enterprise value. The proposed acquisition price highlights the inherent value and potential of 1847 Cabinets Inc., showing a substantial premium compared to our current market valuation. We believe this stark contrast serves as a clear indication of the market's underappreciation of the company's true worth, further underscoring the compelling investment opportunity presented by 1847."

"We are committed to working diligently towards finalizing the transaction in a timely manner. As we progress towards the culmination of this deal, we remain steadfast in our commitment to unlocking value for our shareholders and positioning 1847 for sustained growth and success," 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.

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

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