TGT - 1847 Holdings On Cusp Of Closing Sale Of 1847 Cabinets Proceeds To Go To Working Capital Liabilities And Potential Share Buyback | Benzinga
When it comes to successful exits of its portfolio companies, 1847 Holdings LLC. (AMEX:EFSH) may be about to add yet another item to its list of successes. The publicly traded diversified acquisition holding company is proving its mettle, most recently with the potential sale of 1847 Cabinets, which designs, manufactures and installs cabinets, doors and millwork for residential construction. In February, 1847 hired Spartan Capital Securities LLC to pursue an exit, and it now appears to be making serious progress on that front.
Late last month, 1847 signed a non-binding letter of intent or LOI with a strategic buyer to purchase 1847 Cabinets. Under the terms of the deal, the buyer offered $27.6 million for 1847 Cabinets' assets, including $11.5 million in earn-out payments over three years. The offer price represents a 5.91x multiple of the company's 2023 EBITDA of about $4.7 million. The deal is going through normal due diligence and is expected to close within 90 days, reports 1847.
“We are pleased with the progress we have made advancing this transaction," 1847 CEO Ellery Roberts said. "This sale represents an important strategic move for 1847, one that validates our ability to purchase, operate and enhance the value of assets and then reach a sale, which will significantly enhance our financial position, enabling us to reallocate resources strategically and capitalize on emerging opportunities within our portfolio and beyond, with a long-term focus on maximizing value for shareholders.”
The company says proceeds from the transaction ...