NEW YORK -- 1847 Holdings LLC, a holding company that has expanded its holdings in the cabinetry and millwork industries with the execution of a non-binding Letter of Intent to acquire a large, established millwork, cabinetry and door manufacturer based in Las Vegas.

The name of the company was not released. The purchase price for this transaction is $16.75 million and is expected to be completed during the third quarter of 2024, subject to the negotiation and entry into a definitive purchase agreement and the satisfaction or waiver of customary closing conditions. The proposed acquisition carries a purchase price of 3.2x 2023 EBITDA, and the company expects to finance the entire transaction using debt.

According to a company statement, the Las Vegas-based target generated approximately $28.6 million in unaudited revenues, approximately $4.5 million in unaudited net income, and approximately $5.2 million in unaudited, adjusted EBITDA in 2023 and currently has almost a year's worth of contracted backlog booked for 2024. 

"This is a very attractive acquisition for our Company," said Ellery Roberts, CEO of 1847 Holdings. "We have strong industry insights into the western US market for construction and the end market demand for cabinets, doors and millwork in particular."

Roberts said that the company intends to keep this transaction separate from 1847 Holdings' existing cabinet operations under the Signature Home Craft (SHC) brand. "We see these as two separate paths for independent value creation, with SHC focused on residential, and the new target focused on commercial, mixed-use, and high density residential."

"We negotiated compelling transaction terms, and we believe we can successfully complete this transaction without a need to raise any additional equity at this time. We see this as a uniquely accretive opportunity that we believe will drive shareholder value," said Roberts.