1847 Holdings LLC (NYSE:EFSH) found its shares going upward fast Wednesday. The company purports to be 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 announced that it has signed a definitive agreement to a acquire a premier consumer products company in the United States.
The company in question generated unaudited revenue in excess of $20 million and positive EBITDA in 2022. The acquisition is expected to be funded without the issuance of any common stock or dilutive equity and is expected to be completed before the end of the third quarter of 2023, subject to customary closing conditions.
CEO Ellery W. Roberts commented, "We are excited to add this consumer products company, with its solid revenue, attractive margins and positive EBITDA, to our portfolio of cash flow positive companies. The (proposed buyout) Target is positioned to execute on several near-term, attractive growth opportunities, as well as operational enhancements that are expected to drive higher sales and margins. The Target also provides meaningful cross-selling and co-branding opportunities across our portfolio companies."
1847 Holdings' investment opinion 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.
EFSH shares gained a penny, or 13.4%, to 11 cents early Wednesday morning.
