Accelerated Growth Illustrates Success of "Buy-and-Build" Strategy Across the Portfolio
Strategically Expanding into New, High Margin Product Categories Including Custom Closets
NEW YORK, NY / ACCESSWIRE / July 25, 2023 / 1847 Holdings LLC ("1847" or the "Company") (NYSE American:EFSH), a unique holding company that combines the attractive attributes of owning private, lower-middle market businesses with the liquidity and transparency of a publicly traded company, today provided an update on its 1847 Cabinet Inc. subsidiary, which acquired Kyle's Custom Wood Shop, Inc. in September 2020.
Mr. Ellery W. Roberts, CEO of 1847 Holdings, commented, "While the High Mountain Door and Trim and Innovative Cabinet & Design divisions have been growing at an impressive rate since acquisition, the recent growth within our custom cabinets is really exciting. To capitalize on this demand, we have more than doubled our production through strategic investments in the business. We believe our growth illustrates the success of our buy-and-build strategy, whereby we continually implement strategies to increase revenue, gain operating leverage and improve profitability within the subsidiaries. In addition to growing our base business, we are strategically expanding into new, high margin product categories. As an example, our Kyle's Custom Wood Shop division, within the 1847 Cabinet Inc. subsidiary, recently entered into the custom closet market, which allows us to leverage our existing customer relationships and strong brand recognition in the market. This new revenue stream was not part of our original guidance of $90 million for 2023, and should further enhance both our top and bottom line results for this year and beyond. We are seeing similar improvements in each of our subsidiaries, which provides us confidence in the overall outlook for the business."
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.
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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.
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SOURCE: 1847 Holdings LLC
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