GOED - 1847 Goedeker rallies in early trade on Appliances Connection acquisition

1847 Goedeker (GOED) +81.2% PM, entered into definitive agreement for acquiring Appliances Connection, leading retailers of household appliances in the U.S., for $210M.Acquisition will be financed through a combination of cash and equity and is expected to close in 1Q21.Combined entities are expected to generate ~$400M of revenue and $30M in EBITDA in 2021.The acquisition adds a fleet of 29 delivery trucks and will realized synergies in lower SG&A costs.The principals from Appliances Connection, Albert, and Elie Fouerti, will continue in their current leadership roles and Albert Fouerti will join the board of directors of 1847 Goedeker.Post-closure, Appliances Connection will continue to operate the business.U.S. household appliance market is valued at $21B growing at 13.7% CAGR, expected to reach $40B by 2025."Together with Appliances Connection, we will significantly increase our operational strengths and realize substantial synergies by combining marketing, logistics, delivery, and installation platform for continued strong top and bottom-line growth," CEO Doug Moore

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1847 Goedeker rallies in early trade on Appliances Connection acquisition