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1847 Holdings Acquires Two Custom Cabinetry Firms

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October 21, 2021 | Press Release

New York, NY—1847 Holdings LLC (OTCQB: EFSH), 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 (dba Innovative Cabinets), 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.

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