NEW YORK — 1847 Holdings LLC, a holding company specializing in identifying over-looked companies, took steps forward on the sale of its 1847 Cabinets Inc. subsidiary.

As previously announced on April 23, 2024, the Company executed a non-binding Letter of Intent (LOI) with a prospective strategic buyer to sell all of the assets of 1847 Cabinets Inc. Under the terms of the LOI, the buyer has proposed an enterprise value of $27.6 million for the acquisition of all of the assets of 1847 Cabinets, including $11.5 million in earn-out payments over three years, representing a 5.91x multiple of 2023 EBITDA of approximately $4.7 million. The transaction continues to progress through routine due diligence and the Company currently expects the transaction to close within the next 90 days.

Ellery W. Roberts, CEO of 1847 Holdings, commented, "We are pleased with the progress we have made advancing this transaction. Currently, the proposed acquisition is undergoing confirmatory due diligence and negotiation of a definitive purchase agreement, both of which are progressing according to plan. As a result, we currently anticipate the closing to take place within 90 days. Given the purchase price, our intention is to utilize the cash proceeds to repay senior secured debt and other liabilities, allocate funds for working capital and future acquisitions, as well as potentially initiate a share repurchase program. 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, of 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."

"While this sale marks a significant milestone, it's just one aspect of our broader strategy aimed at optimizing asset allocation and enhancing overall shareholder returns. The proposed transaction highlights what we believe is the considerable undervaluation of the Company relative to the intrinsic value of our portfolio companies. The acquisition price underscores the inherent value and potential of 1847 Cabinets, as it is priced at a substantial premium compared to the current market valuation for the entire company," concluded Roberts.