EFSH - 1847 Holdings Signs Letter Of Intent To Buy Leader In Millwork Cabinetry And Door Manufacturing Expands Its Presence In Growing Market | Benzinga
1847 Holdings LLC. (AMEX:EFSH), a specialized holding company that buys undervalued and overlooked small and medium-sized businesses, is expanding its presence in the millwork, cabinetry and door manufacturer markets by signing a letter of intent to acquire a leading player in that space.
1847 Holdings is paying $16.75 million for the unnamed company operating out of Las Vegas. The target generated about $28.6 million in revenue, about $4.5 million in net income and roughly $5.2 million in adjusted EBITDA in 2023. That makes the company an ideal acquisition target for 1847. It typically targets businesses with EBITDA of $5 million or more that are being ignored by the marketplace. 1847 buys them at lower valuations and invests in the business to either spin it out or grow it as an 1847 portfolio company.
The acquisition target entered 2024 with a year’s worth of contracted backlog booked, positioning it for growth in the current year. 1847 expects to close the deal in the third quarter of this year and is paying 3.2 times 2023 EBITDA in a leveraged buyout, and the PE firm plans to finance the deal with debt. It already owns Kyle's Custom Wood Shop, which specializes in custom wood, kitchen and bathroom cabinets, High Mountain Door & Trim, a maker of custom windows, doors and hardware and Innovative Cabinets & Design, which specializes in custom cabinetry. All of them are focused on the residential market ...