Good Morning Reader,
We are excited to share our latest pick, 1847 Holdings LLC (NYSE American: EFSH), a dynamic holding company with a proven track record in managing diverse small businesses.
This morning, 1847 Holdings LLC (NYSE American: EFSH) announced progress on several transformative transactions,
including an imminent acquisition of a millwork, cabinetry, and door manufacturer with $28.6 million in 2023 revenues. The purchase price of $16.75 million, representing 3.2x the target’s 2023 EBITDA, makes this a strategic acquisition. (7)
Additionally, 1847 Holdings is in discussions to sell one of its business lines, further strengthening its financial position. The
company is also restructuring debt, enhancing its capital structure for long-term success. (7)
Pre-market sentiment is incredibly strong following this news. Don’t get left behind—this is a moment to pay attention to.
Key Highlights:
📗 Strong Financial
Performance:
1847 Holdings LLC (NYSE American: EFSH) reported a 15.0% year-over-year increase in revenue for Q1 2024, reaching $14.9 million compared to $13.0 million in Q1 2023. Gross profit also saw a significant boost, increasing by 13.3% to $5.6 million. (1)(2)(3)(4)
🏗️ Strategic Acquisitions and
Divestitures:
The company is making significant strides with strategic transactions aimed at enhancing cash flow and strengthening the balance sheet. Notably, 1847 Holdings LLC (NYSE American: EFSH) is finalizing a definitive agreement to acquire a leading millwork, cabinetry, and door manufacturer with substantial EBITDA in 2023. This acquisition is expected
to significantly lower the company’s leverage ratio and accelerate debt repayment. (1)(2)(3)(4)
🌍 Expansion and Diversification:
1847 Holdings LLC (NYSE American: EFSH) has strategically expanded its ICU Eyewear subsidiary, adding 300 new locations with a leading US retailer. The company has
also diversified its manufacturing to reduce production costs and fortify its supply chain. Additionally, Wolo Manufacturing Corp, another subsidiary, has expanded into India through a supply chain diversification program. (1)(2)(3)(4)
💼 Optimized Asset Management:
The company executed a
non-binding Letter of Intent to sell all assets of 1847 Holdings LLC (NYSE American: EFSH) for $27.6 million, a strategic move that will streamline operations and optimize resource allocation. Proceeds from this sale will be used to repay senior secured debt, fund future acquisitions, and potentially initiate a share repurchase program, significantly enhancing 1847 Holdings’ financial position. (1)(2)(3)(4)
➕ Positive Cash Flow and Debt Reduction:
By divesting Asien’s Appliance and implementing other strategic initiatives, 1847 Holdings LLC (NYSE American: EFSH) has significantly improved its balance sheet, resulting in a $1.1 million gain for Q1 2024. The divestiture is expected to reduce annual expenses by approximately $10.9 million, positively impacting
margins across the company’s primary business lines. (1)(2)(3)(4)
🔭 Looking Ahead:
1847 Holdings LLC is not just a company; it’s a growth story unfolding before our eyes. The strategic initiatives and financial acumen demonstrated by the management team are positioning the company for sustained growth and
profitability. With a robust acquisition pipeline and a focus on value-driven, cash flow-positive businesses, 1847 Holdings LLC (NYSE American: EFSH) is on track to explode. 🎇 (1)(2)(3)(4)
Stay tuned for further updates as we continue to monitor and share the exciting developments of this promising company.
To your
success,
Max Masters
Co-founder, Market Tips Newsletter
Sources:
1. https://finance.yahoo.com/news/1847-provides-pending-strategic-transactions-120000855.html
2. https://finance.yahoo.com/news/1847-reports-15-0-increase-123000601.html
3. https://finance.yahoo.com/news/1847-provides-sale-1847-cabinets-120000922.html
4. https://finance.yahoo.com/news/1847-reports-59-2-increase-123000601.html
5. https://finance.yahoo.com/quote/EFSH/
6. https://finance.yahoo.com/quote/EFSH/history/
